Budget hits confidence

THE most austere Budget since the Second World War has done nothing to improve consumer confidence, according to the GfK/NOP Consumer Confidence index, which fell for the fourth consecutive month in June.

Published today, the overall index fell one point to -19. All the gains that had been made
from December to February have now been lost.

Nick Moon, managing director of GfK/NOP Social Research, said: “Concerns about the
fragility of the recovery and the potential for a double-dip recession may be exacerbated
by the fall in confidence in the general economy.”

Confidence in the general economic situation over the next year fell three points to -12 while the major purchases measure has fallen to -24. Moon added: “The outlook for major purchases has also dropped, which suggests the government cannot rely on consumers to fuel growth.”

However, consumers proved more confident about their personal finances over the next year, which increased by one point to -2, three points lower than in June 2009.