You are here: Home - Saving & Banking - News -

Consumer confidence falls in February

Written by:

The Nationwide Consumer Confidence Index fell to a new low in February, down three points to 78.

Its Bank Base Rate decision forecast reveals that 80% of consumers expect no change in March, while 20% envisage a 0.35% decrease.

The Present Situation Index – how consumers feel about the current economic and employment situation – saw the biggest fall of the four indices, from 83 in January to 76 in February. This was driven by a sharp change in sentiment about current economic conditions.

The proportion of consumers thinking that current economic conditions are bad has increased from a quarter to a third. In contrast, consumers’ feelings about the current job situation remain virtually unchanged on the month.

While there does seem to have been a small upward trend in the proportion thinking that there are fewer jobs available since the autumn, labour market sentiment is still much better than at this time last year.

Martin Gahbauer, Nationwide’s senior economist, said: “The continued downward trend in consumer confidence is to be expected given the effect of higher food and fuel costs on people’s pockets and the tightening of the availability of credit.

“In addition, growing uncertainty about future economic conditions is also likely to have affected consumers’ overall sentiment. Despite this, consumers remain relatively positive about their employment situation both now and in six month’s time. It is perhaps too early for the Base Rate reduction at the beginning of February to have had any effect, but it is unlikely in current conditions that consumer confidence will return to the highs of 2007.”


Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • Given the Brexit uncertainty, you may be looking to protect your pounds ahead of your next holiday. Here are five w…
  • If you are concerned you may miss the 31 January HMRC deadline to file your tax return, here are five excuses that…
  • Millions of Lloyds, Halifax and Bank of Scotland customers unable to make and receive payments in latest bank IT me…
  • RT @YourMoneyUK: Millions of Lloyds, Halifax and Bank of Scotland customers unable to make and receive payments in latest bank IT meltdown…
  • RT @YourMoneyUK: Millions of Lloyds, Halifax and Bank of Scotland customers unable to make and receive payments in latest bank IT meltdown…
  • Make sure you're not paying more than you need to for your #energy. Check when your fixed deal ends and pop a note…

Read previous post:
Consumers continue to apply for cards

More than 3.2 million UK adults own five or more credit cards, according to the latest research from financial comparison...