The country's financial optimism has hit a record low, new
research shows.
In the latest consumer confidence survey conducted by GfK
NOP, the public's outlook in regards to Britain's general
economic wellbeing continued to fall over the course of
this month to stand at -10, a decrease of two points from
research conducted in October. During the same month in
2006, the overall index was at -7. As a result, the score
is now at its lowest point since March 2003.
Across all six of GfK NOP's indices a fall in optimism was
noted. In particular, the index judging consumers' views
about their personal finances over the last 12 months,
which could include opinions ranging from the availability
of UK loans and savings accounts to budgeting and credit
cards, was found to stand at zero. Consequently, the index
had decreased from the two points recorded in October, the
same figure also recorded in November 2006. Going forward,
people's opinions on how their personal finance situation
will fare during the coming year retained a positive score
at +9. However, this is a fall of four points from the
previous month.
The public's opinion about the country's general economic
wellbeing over the past 12 months fell to -32, three points
below the same time last year. Meanwhile, the forecast
about future prospects also saw a decrease, now standing at
-21. In addition, the study also indicated a fall among
those believing that now is a prime time to save money as
currently the index stands at +35. Although the statistic
is still some four points above November 2006 figures, it
also represents a decrease of three from last month.
Meanwhile, the index judging whether now is a good time to
make a major purchase dropped by two points over the course
of November to stand at -7, eight points below figures
recorded in the same month last year. In turn, this could
impact upon consumers' willingness to apply for a loan to
finance buying a car, carrying out home improvements or any
other area of large expense. This is the lowest that the
index has stood in over a decade, when in December 1995 a
score of -9 was recorded.
Rachael Joy, spokesperson for GfK NOP's consumer confidence
team, claimed the drop in Britons' financial confidence was
in part due to the troubles experienced by the wider
economic markets, in which a number of loan lenders have
withdrawn their cheap products and increased the rates of
interest on the loans that they are still offering. She
said: "This month we have experienced a number of factors
that have made the consumer wary about both their financial
future and the general economic situation of the country.
With petrol prices racing past 1 pound a litre, food prices
on the increase and the prospect of higher mortgages and
loan fees on the horizon resulting from the credit crunch,
even the most optimistic seem to view their glass as
'half-empty'."
Consequently, with such drops in economic confidence noted,
those Britons who are worried about their capacity to
manage their money in the coming months may wish to
consider applying for a loan to help supplement spending.
Such a borrowing product could be particularly helpful for
parents, after recent research from the Children's Mutual
indicated that many mums and dads are finding their
finances are coming under pressure due to the costs of
supporting their grown-up children in going to university
and getting on to the property ladder. As a result, a cheap
low rate loan could be one way in which to provide aid with
money.
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Abbi Rouse is Editor in Chief for All About Loans. Our
visitors have access to UK homeowner loans of all types:
From self employed loans to bad credit tenant loans. Visit
today http://www.allaboutloans.co.uk/
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