Consumer confidence wanes as economic worries remain

CONSUMER confidence dipped slightly in November &ndash; the first time in over a year that the index has fallen &ndash; after recording the highest level of consumer confidence in a year and a half only last month, GfK NOP will today report.<br /><br />Four out of five measures of consumer confidence experienced a marked downturn: confidence in the general economy over the last 12 months reversed by six points to -59 and the &ldquo;major purchases index&rdquo; fell by seven points to -19. <br /><br />The savings index defined as the &ldquo;now is a good time to save&rdquo; index also fell 14 points from this time last year when the economy was in the eye of the recession. The overall consumer confidence index fell four points to -17.<br /><br />Last month the benchmark interest rate was at a record low of 0.5 per cent and the Bank of England&rsquo;s decision earlier this month to pump in more money into the economy means a further downward pressure on interest rates, making savings less attractive.<br /><br />Last month&rsquo;s upbeat consumer confidence index indicated a growing belief among consumers that the future outlook is a brighter one. <br /><br />But today&rsquo;s news confirms that the UK&rsquo;s economic recovery is still on shaky ground.