Investing.com – The U.K.’s Nationwide consumer confidence index fell to an all-time low in October after deteriorating for the fifth consecutive month, industry data showed on Thursday.
In a report, the Nationwide Building Society said that its consumer confidence index fell by 9.0 points to a seasonally adjusted 36.0, down from September’s reading of 45.0.
Analysts had expected the Nationwide consumer confidence index to improve by 1.0 point to 46.0 in October.
The main index now stands at an all-time low, 42.0 points below its long run average of 78.0.
The Expectations Index fell by 14.0 points in October, taking it to its lowest ever reading of 48.0.
Continuing consumer concern about the future state of the economy and the jobs market has driven the recent falls in confidence, while the euro zone debt crisis is likely to continue to weigh on confidence in the short term.
Commenting on the report, Robert Gardner, Nationwide's chief economist, said, “A wave of disappointing economic news at home and ongoing uncertainty surrounding the Euro crisis has dealt a heavy blow to sentiment.”
“Pressures on household budgets have also intensified, with underlying wage growth running at less than half the rate of inflation and the jobs market showing renewed signs of weakness,” he added.
Following the release of the data, the pound was fractionally higher against the U.S. dollar, with GBP/USD easing up 0.07% to trade at 1.5741.
Meanwhile, European stock markets were down after the open. The FTSE 100 fell 0.45%, the EURO STOXX 50 shed 0.35%, France’s CAC 40 slipped 0.3%, while Germany's DAX dropped 0.55%.
In a report, the Nationwide Building Society said that its consumer confidence index fell by 9.0 points to a seasonally adjusted 36.0, down from September’s reading of 45.0.
Analysts had expected the Nationwide consumer confidence index to improve by 1.0 point to 46.0 in October.
The main index now stands at an all-time low, 42.0 points below its long run average of 78.0.
The Expectations Index fell by 14.0 points in October, taking it to its lowest ever reading of 48.0.
Continuing consumer concern about the future state of the economy and the jobs market has driven the recent falls in confidence, while the euro zone debt crisis is likely to continue to weigh on confidence in the short term.
Commenting on the report, Robert Gardner, Nationwide's chief economist, said, “A wave of disappointing economic news at home and ongoing uncertainty surrounding the Euro crisis has dealt a heavy blow to sentiment.”
“Pressures on household budgets have also intensified, with underlying wage growth running at less than half the rate of inflation and the jobs market showing renewed signs of weakness,” he added.
Following the release of the data, the pound was fractionally higher against the U.S. dollar, with GBP/USD easing up 0.07% to trade at 1.5741.
Meanwhile, European stock markets were down after the open. The FTSE 100 fell 0.45%, the EURO STOXX 50 shed 0.35%, France’s CAC 40 slipped 0.3%, while Germany's DAX dropped 0.55%.