Nationwide’s Consumer Confidence Index has revealed growing pessimism about the future of the UK economy.
The building society’s monthly report showed that 53 per cent of people believe the situation will worsen by the end of 2008, the highest level for the statistic this year.
However, the biggest number of people (18 per cent) since a year ago considers this to be a good time to make a major purchase such as a house or car.
Chief economist Fionnuala Earley said a fall in confidence was anticipated, stating: “With reports of rising inflation rates, weaker economic growth and further falls in house prices, it is not surprising that people are feeling much less optimistic about the future.”
The index also found that just 16 per cent of consumers expect their household income to have risen by the end of the year.
Nationwide cut rates on several of its
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