U.K. consumer confidence cratered 11 points in July to 51 in the Nationwide Building Society sentiment index. It was the biggest drop in at least 4 years and the lowest level since the survey began in May 2004. Why are UK consumers so dour? This sound familiar?
- plummeting housing prices
- rising unemployment
- accelerating inflation
- continuing rise of food and energy costs
What else did the Nationwide survey find? Nothing good:
- 2/3 said the current economic situation is bad
- 85% predicted it will be the same or worse in six months’ time
- 42% of people predicted there will be fewer jobs available in six months’ time
Some economists believe the recession has already hit the U.K. (Bloomberg):
“The U.K. economy is already in a recession or close to a recession,” former Bank of England policy maker Sushil Wadhwani said in an interview with BBC Radio 4 today in London. “All forward-looking data for activity suggest a weakening…”
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