U.K. consumer confidence fell to its lowest level in at least four years in April, according to the Nationwide Building Society, as our regulatory buffoons find themselves hamstrung by inflationary pressures (read: unable to do anything even remotely useful) while confronting problems that ail the housing market and keep the cost of living sky-high. Does shopper depression ensue? You bet it does. And we got the details…
The index of sentiment taken from the responses of 1,000 people declined seven points to 70, the lowest since the survey began in May 2004, Britain's fourth-biggest mortgage lender said today in an e-mailed statement.
Home values had the first annual decline since 1996 last month after banks curbed mortgage lending to the lowest in nine years, Nationwide's house-price index showed a week ago. The Bank of England, which has cut the benchmark interest rate three times since December to avert a recession, may leave it unchanged tomorrow to keep inflation under control, economists say.
"Food and fuel prices remain high and with house prices no longer rising, it is unlikely that consumer confidence will pick up very quickly," Fionnuala Earley, Nationwide's chief economist, said in a statement. "Inflationary pressures mean the Monetary Policy Committee will probably prefer to cut rates at a more gradual pace than many would prefer."
An index of sentiment on consumers' present situation dropped nine points to 65, and the gauge of their future situation declined five points to 74. A measure of willingness to make a major purchase fell two points to 65.
House prices declined in April by 1 percent from a year earlier, Nationwide said April 30. Rival HBOS Plc, the nation's biggest mortgage lender, said May 2 that prices fell 0.9 percent on the year, which was also the first drop recorded since 1996.
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