Consumers are beginning to brace themselves for a recession and are now less confident about the health of the economy, thanks in part to rising food bills, according to a new survey released today.
In its latest report, GfK NOP said that consumer confidence about the general economic situation has dropped ten points in the past year, while the overall index of confidence is now at -36.
The forecast for personal finance over the next 12 months is -12, which is 25 points lower than this time last year, the survey found.
Rachael Joy from GfK NOP said: “Consumers are not at all confident about buying major purchases as rising food and energy bills leave them increasingly worried about keeping up with payments.”
She added that consumers are preparing themselves for what is going to be a “very difficult economic time” over Christmas.
This feeling is held by people despite the cut in interest rates this month and the falling price of petrol, she said.
