Confidence falls as consumers feel the pinch

By Graham Bardgett
Thursday, 24 July 2008

Consumer confidence in Northern Ireland has taken a tumble, according to a survey by Nationwide Building Society.

Nationwide’s quarterly consumer index showed that confidence fell by 25 points to 56 over the past three months.

Steve Cowdry of Nationwide’s consumer unit said the fall in confidence was more marked in Northern Ireland than elsewhere in the UK.

He said: “Across the UK, consumer confidence fell still further during the second quarter of 2008, with the Nationwide Consumer Confidence Index dropping 15 points.

“Weakening confidence is perhaps not surprising given the continuing uncertainty in the economy and the additional pressure on households from increased food and fuel costs.

“Confidence about the current economic situation has fallen for the fourth consecutive quarter with only 15% of people in Northern Ireland being positive about the current economic situation - although this is slightly higher than the UK average (14%).

“Consumers in Scotland, East England, London, the South East and the South West remain the most resilient to rising fuel and food costs, while confidence has deteriorated sharply across Wales, Northern Ireland and the East Midlands.”

In Northern Ireland, confidence about the current employment situation fell by one point.

Despite this, 50% of consumers remained positive about current job availability.

Sentiment about future job availability also fell for the fourth consecutive quarter and is now lower than the UK average (34%).

Just less than a third (31%) in Northern Ireland are confident about the future employment situation.

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