Consumer confidence still at record low

Consumer confidence remained at a record low during August as people worried about the current economic situation and the outlook for jobs.

But an easing in petrol prices, as well as cuts to mortgage rates helped to prevent people's optimism sliding further, ending seven consecutive months of falling confidence, according to Nationwide.

The group's consumer confidence index remained unchanged at a record low of 52 during the month, well down on a level of 93 in August last year.

People's view on the current economic situation continued to worsen during the month, with this index hitting a new low of 45.

Around 65 per cent of people think the current economic situation is bad, compared with 61 per cent in July and just 14 per cent in August last year.

Fionnuala Earley, Nationwide's chief economist, said: "Economic uncertainty continues to affect sentiment around spending and employment, but it seems that consumers are beginning to take a realistic view of the future and are factoring in the possibility of tougher times ahead."

She said: "Lower petrol prices and more competitive new mortgage rates will be good news for the public."

People are also worrying about their jobs following an increase in unemployment, with 31 per cent thinking there are not many jobs available, while 47 per cent think there will be few jobs available six months down the line.

But consumers are slightly more upbeat about the future of the economy, with the number of people thinking the economy will be worse in six months' time easing slightly to 57 per cent, compared with 60 per cent in July, while 28 per cent think it will be the same.

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