Debt levels high; confidence levels low

9 December 2008

The latest figures from Nationwide show that consumer confidence fell in November.

According to the Consumer Confidence Index, produced by Nationwide in partnership with TNS, consumer confidence dropped by 6 points, falling to 50 points.

Perhaps surprisingly, the Spending Index actually rose (to 64 points). 26% of the people questioned believed that ‘now is a good time to make a major purchase’ – a rise of 8% on October’s figure. And 58% of the people questioned believed that ‘now is a bad time to make a major purchase’ – a drop of 8% on October’s figures.

However, as the CCI points out, ‘there is a difference between recognising that it’s a better time to buy and the ability or desire to spend’.

According to the latest figures from the Bank of England, personal debt now stands at a total of £1.455 trillion – £235 billion of which is unsecured debt.

Together with the credit crunch, these high levels of personal debt are reducing consumers’ spending power – and 45% of the people questioned (7% more than in October) believed that ‘the economic situation will be worse in six months time’.

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Tags: debt, debts, Consumer Confidence Index, Spending Index, personal debt, personal debts

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