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GfK NOP Consumer Confidence barometer - May 2008

Consumer Confidence hits an eighteen year low

London, 30 May 2008

• The Index has dropped by 5 points to -29; a level not seen since November 1990.
• The major purchase measure score is now at its lowest level since this record began in 1983.
• Consumers’ confidence in the UK economy over the next twelve months has also hit a new low.

Rachael Joy in the Consumer Confidence team at GfK NOP commented:

"UK Consumer Confidence continues its decline and we are seeing levels not recorded since 1990; we are at a massive twenty-seven points lower than this time last year.

"Consumers’ confidence in the economy over the next year, plus 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 further fall in confidence, as increasing inflation and dropping house prices make reigning in their spending even more likely to the UK consumer.”

Consumer Confidence Measures – May 2008

The overall index score this month has fallen five points to -29, twenty-seven points lower than this time last year. This has been caused by a fall across all five measures. The annual moving average has dropped to -12.

Personal Financial Situation

The index measuring changes in personal finances during the last year has dropped by three points to a score of -11; this is fourteen points lower than this time last year. This level has not been sen since December '95. 

The forecast for personal finances over the next year has dropped four points to a score of -4. This is seventeen points lower than this time last year.

General Economic Situation

The measure for the general economic situation of the country during the last twelve months dropped five points to a score of –58; this is a massive forty points lower than this time last year. This score has not been this low since Feb ’93 when it was -59.

Expectations for the general economic situation over the next twelve months have dropped one point to -39; twenty-nine points lower than this time last year. This score is the lowest on record for this measure (i.e. since 1983). 

Climate for Major Purchases

The major purchases measure has fallen by eight points, from -24 to -32; this is thirty-six points lower than this time last year. This score is the lowest on record for this measure (i.e. since 1983). 

Savings Index

The ‘now is a good time to save’ Index, has dropped by 3 points to +25, this is ten points lower than this time last year.