Consumer confidence plummets to lowest level since 1992

Consumer confidence is at its lowest level for more than 15 years, according to a new report from GfK NOP. The research also reveals that most consumers think the economic situation will get worse before it gets better.

GfK has been conducting its Consumer Confidence Survey since 1973 but April’s figures were the worst since November 1992. Scores in all five categories fell and the overall score was down five points to -24, 18 points lower than April 2007.

Consumer confidence researcher at GfK Rachael Joy says: “With the news dominated by stories of recession, the credit crunch, housing market falls, and future petrol and food price increases, it will take more than a quarter point reduction in interest rates to alleviate the current gloomy mood of the UK consumer.”

The index scores for the “personal financial situation” category were down four points for both the last year and the next year. The “general economic situation” showed a drop of ten points for the previous 12 months and six points for the next 12 months, while the score for “climate for major purchases” fell three points to -24, its lowest level since 1990.

Nationwide, the UK’s biggest building society, said this morning (April 30) that house prices have recorded their first annual fall for 12 years.