Consumer confidence ‘on the wane’

The decline in UK consumer confidence has happened for good reasons, the Consumer Credit Counselling Service has said.

A spokesperson for the body said it would be “surprising” if this was not the case, as many commentators have said there are more economic woes to come, while the housing market is still slow and redundancies numerous.

He added: “At the same time consumers are well aware that there will have to be substantial cutbacks in public sector spending in order to reduce the UK’s debt.”

Greater job security and a stronger housing market will help to improve confidence, the spokesperson concluded.

Such factors may serve to keep interest rates low, which may be useful for those who are looking for low-cost loans.

Nationwide’s Consumer Confidence Index, which was published earlier this month, revealed a five-point fall in December from 74 points to 69, the largest drop since November 2008.

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