Friday 28 January 2011

Sharp dip in consumer confidence shows that public believe economy is back in danger zone

There has been a sharp dip in consumer confidence in the first month of 2011.

The Gfk NOP consumer confidence barometer survey finds that net consumer confidence is now -29, falling from -21 since December.

This is the index's lowest level for over 18 months - since March 2009. The eight point consumer confidence dip is also the largest fall in a single month for 18 years, during the 1992 recession.

(See 2010 and 2009 tracker comparisons).

All five confidence measures tracked by the index have fallen. The sharpest decline was in confidence about making major purchases fell by 21 points in the month, from -7 to -28, probably in part reflecting anticipation of the new year introduction of the VAT rise.

The Labour Shadow Treasury team say that the new figures will increase pressure on the government to come up with a credible growth plan and a "plan B" on the economy.

Shadow Chief Secretary Angela Eagle has immediately reacted to the new consumer confidence figures, saying:

“Cutting too deep, too fast is not the best way to get the deficit down. And it is simply not credible to insist that there is no alternative.

“George Osborne must stop burying his head in the sand, take another look at the facts and get himself a plan B.


The new Gfk NOP figures mirror Ipsos MORI also finding increasing concern that the British economy is back in the danger zone, with the January political monitor poll, released on Thursday also finding

The number of people believing the economy will get worse over the next 12 months is also -29 with Ipsos MORI, with 53% believing the economy will get worse and 24% that it will improve, as Thursday's Evening Standard reported.

Strikingly, the Ipsos MORI poll fieldwork took place from January 21st to 24th. So the public responses were given before the release of very poor GDP figures on Tuesday, which under-shot expectations, showing that the economy shrank by 0.5% during the final quarter of 2010.

Left Foot Forward has more detail from the poll, including a sharp fall in those believing the government's agenda will not improve public services, with a net score of -27 compared to -10 last October.

YouGov's daily tracker poll shows approval of the government is -24, with 30% approval and 54% disapproval. Labour leads the Conservatives by 44% to 38% with the LibDems on 8%.


Stylo Geek said...

I agree

Robert said...

I went to town this week in my second hand wheelchair, cannot afford a new one, anyway the shops were empty and one shop a lad said he was being made redundant, he said since Christmas the shop had taken less then at any time before, he said I worked here twenty years and it's never been so bad.