29 February 2008
A new report has revealed that consumer confidence has dropped to its lowest point in the past thirteen years.
The GfK/NOP survey reveals that consumers are choosing to spend less - which could include putting fewer purchases on credit cards - due to worries about the housing market, rising fuel and energy prices, and higher food costs.
According to the data, the balance of consumers worried about the economy fell to minus 40 from January's figure of minus 36.
Rachael Joy of GfK/NOP said that despite February's interest rate cut, people are still worrying about spending money.
"Consumers are feeling a little less confident about their own personal finances and much less confident about the general economy as a whole," she remarked.
Meanwhile, separate data from the Confederation of British Industry earlier this week revealed that retail sales fell in February for the first time in over a year, as retailers admit they will be forced to raise prices further.
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