Economic woes dent consumer confidence

CONSUMER confidence fell for the seventh month in a row during April to hit a new low as people worried about the state of the economy, figures showed today.

Nationwide Building Society said its consumer confidence index dropped by seven points during the month to stand at just 70, its lowest level since it was first launched in May 2004 and 20 per cent below April 2007's figure.

The fall was driven by people worrying about the economy, with just 17 per cent of respondents thinking the current economic and employment situation is good, less than half the 36 per cent who felt upbeat in August before the full impact of the credit crunch hit.

At the same time, 39 per cent of people now think the economy is in bad shape, pushing the group's index which measures people's confidence in the present situation down to a new low of 65. All measures of confidence fell during the month, with people's sentiment about the economic and employment situation in six months' time dropping for the first time this year.

Fionnuala Earley, Nationwide's chief economist, said: "Food and fuel prices remain high and, with house prices no longer rising, it is unlikely that consumer confidence will pick up very quickly."