Uk consumers Holds Negative View on Economy
Common Britishers are crushed between the inflation and the condition of economy.As the GfK NOP consumer confidence barometer shows a sharp decline in consumer confidence,drops 8 points to -29,which is the lowest since March 2009.Consumer confidence analsys shows the effects of consumer behavior on consumer spending.Consumer behavior reflect a popular belief that macro-economic performance depends heavily on consumers ‘ expectations for future economic conditions.People are now shifiting their expending pattern and moving towards savings for future.Wages are not growing with inflation there is a disbalance between the spending and earning.Again VAT and unemployment are proving a major factor in negative consumer confidence.
According to reuters -
Declines were registered in all five categories, with the “climate for major purchases” index the hardest hit following the rise in VAT to 20 percent from 17.5 percent at the start of the month.
Nick Moon managing director of GfK NOP Social Research – “Today’s figures, when combined with the bleak economic forecast, will make talk of a double-dip recession unavoidable.”