Consumer Confidence Shown To Be Slipping

2008-06-04 Word Count: 678 Category: Personal Finance

According to a recent report, more consumers are worried about their financial situation.
In research undertaken by Gfk NOP, it was indicated that the nation's financial situation has continued to decline. They announced that the overall index which measures British opinions on the "economic situation" reached -29 over the course of last month. This figure represents a five point fall from the -24 recorded in April this year and down from -2 which was recored in May of last year.
Their index measuring Britons perception over their own financial situation over the last 12 months was noted to have fallen by 3 points to stand at -11, the lowest figure noted since late 1995. Meanwhile, predictions over how they will control their finances over the next 12 months is also bleak. This index is at -4, a drop of 17 points from 12 months ago.
As a result of worries about their current financial situation, it is probable that people are finding it difficult to meet demands on their spending such as credit cards, loans and domestic bills.
Additionally, the measure tracking how the economy as a whole has fared over the past year is at -58, a fall of 40 points from the study carried out 12 months ago and the lowest figure seen for longer than 15 months. On top of that, expectations about the nation's general financial situation stands at -39.
Research from the firm also showed that the index measuring whether or not consumers think that it is currently a good time to make a significant purchase has continued to fall. Such a measure was revealed to be currently standing at -32, a drop of eight points from April data and 36 below May 2007. The latest figure was also indicated to be the lowest score ever recorded since Gfk NOP began its study in the early 1980s.
However, for prospective buyers who are thinking of making a significant purchase, which might include a car or home, using a cheap personal loan to fund such buying could be advisable.
And with people having such concerns about their financial situation, it is quite plausible to think that more people will want to think a little more towards putting cash away for the future. However, it would appear that this is not necessarily the case as the index tracking whether people think that now is currently a good time to plan for the future has fallen. Down by three over the month of May to stand at 25, the index stands ten points lower than during the corresponding period last year.
Speaking about the figures, Rachael Joy, from GfK NOP's consumer confidence team, said: "UK consumer confidence continues its decline and we are seeing levels not seen since 1990; we are at a massive 27 points lower than this time last year. Buyers' confidence in the economy over the next year, additionally a reluctance to make major purchases, reflect the popular expectation of a recession - both these measures are at the lowest level on record. The future months may see even additional fall in confidence, as increasing inflation and dropping house prices make reigning in their monthly expenditure even more likely to the UK consumer".
Those people with concerns about their ability to cope over the next year could be recommended to take out a low rate loan. By doing so, this may allow buyers to meet various constraints on their monthly expenditure at once, leaving them with just one affordable repayment to make each month. This might be of assistance to a large number of consumers after Michael Coogan, director general for the Council of Mortgage Lenders, expressed disappointment at the Bank of England's decision to maintain interest rates last month. He claimed that although most consumers should be ok, the housing and mortgage markets will encounter problems over the course of 2008. Mr Coogan advised those worried about their ability to manage their money to contact their loans provider or a financial advisory service as soon as they can.

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Mark Dawson writes for the Loan Arrangers. Where visitors can compare loans (www.loan-arrangers.co.uk/compare-loans)online, and apply for the best loans rate available to them. To read more articles from Mark go to www.loan-arrangers.co.uk/