UK consumer confidence falls

Consumer confidence in Britain dropped close to its lowest level in more than three decades in October as the financial crisis deterred Briti
sh shoppers, according to a survey out on Friday.

The GfK NOP survey of about 2,000 people interviewed between Oct. 3-19 showed that consumer confidence fell in October to near the lowest levels it has recorded since it began in 1974.

The international market research firm said that consumer willingness to make major purchases fell to its absolute lowest level on record, with those surveyed widely agreeing that now is a bad time to buy expensive items like furniture and electrical goods.

``The turmoil surrounding the banking world and subsequent turbulence in the financial markets is making for an uncertain time,'' said Rachel Joy, a consumer confidence expert at GfK NOP. ``Consumers are not at all confident about buying major purchases as rising food and energy bills leave them increasingly worried about keeping up with payments.''

Consumer spending accounts for around 65 percent of Britain's total gross domestic product, according to Global Insight, a London-based economic research group.

As a result, the profound fall in consumer confidence is further evidence, following the official news earlier this month that Britain's economy contracted by 0.5 percent last quarter, that the country is heading for a recession, technically defined as two or more quarters of shrinking national income.

Source: EconomicTimes