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UK Consumers Plan Less Spending, More Saving
The UK consumer confidence headline index has dropped two points this month to -4, the lowest so far in 2004 and similar to the level of late 2003, according to research carried out by Martin Hamblin GfK on behalf of the European Commission.
Perceptions and expectations regarding personal finances over the last and next twelve months remain the same (-1 and +9 respectively). Perceptions and expectations of the general economic situation in the country are also fairly stable (-19 and -14 respectively). The biggest change is the apparent result of recent interest rate rises: perceptions of whether 'now is a good time to make major purchases' have deteriorated 8 points +5, the lowest point since December 2003, while the perception of whether 'now is a good time to save' has increased six points to +21.
According to Grant Montague, Director at Martin Hamblin GfK, the fall demonstrates 'the reaction of consumers to the recent Bank of England interest rate rise to 4.5% this month and speculation of further increases'.
2105 individuals aged 16+ were interviewed between 3 June and 22 June 2004. The agency's web site is at www.martinhamblin-gfk.com
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