Families under pressure
There’s more bad news about consumer confidence, with the release of the July figures for the GfK NOP Consumer Confidence Barometer, which dropped five points. This follows another fall lost month and a mini-recovery earlier in the year has now been wiped out. Nick Moon, the Managing Director of GfK NOP Social Research, noted that all the elements of the index fell and that:
Before this year, the index has only twice been lower in its 37-year history: during the recessions of early 1990 and mid-2008.
People are very negative about the general economic situation – their net assessment of the past 12 months was minus 57, down from minus 50 and their net assessment for future prospects minus 27, down from minus 18. What I found worrying, however, was what people thought of their own position:
Although people’s spending is influenced by what they think is going to0 happen to the economy, it’s their own situation that has most effect. This is yet another indication that household consumption isn’t going to return us to growth.