| The country's financial optimism has fallen | | | | opportunity to get household wares, such as electrical |
| dramatically, new figures show. | | | | goods, in comparison to 40 per cent from the |
| In the latest consumer confidence index released by | | | | previous month. |
| Nationwide, Britons' outlook towards money | | | | However, despite the lack of optimism in regards to |
| decreased by 12 points over the course of | | | | the country's economy and general employment |
| November to stand at 86 - the largest monthly drop | | | | situation, many people believe that this will have little |
| ever recorded. However, a downturn in peoples' | | | | effect on their household finances - as 89 per cent |
| views on financial matters, on areas ranging from | | | | of those questioned state their household income will |
| buying goods and personal loans to savings accounts | | | | be the same or higher within six months' time. |
| and interest rate changes, is expected. The company | | | | Commenting on the figures, Fionnuala Earley, chief |
| reported that "the spate of gloomy news" over | | | | economist for Nationwide, said: "We've been |
| recent months is beginning to have an impact on the | | | | expecting consumers to react to the events of |
| wider public. It was suggested that petrol prices | | | | recent months for some time so the fall in the index |
| surpassing the 1 pound per litre mark and the credit | | | | this month was not a surprise. Uncertainty about the |
| crunch impacting upon the availability of cheap loans | | | | effects of the credit crunch together with rising oil |
| were all having an effect. In addition, a rise in food | | | | and food prices seem to be affecting feelings about |
| prices was purported to be having an impact on | | | | jobs and the future economic situation. With this in |
| people's sentiment. | | | | mind, it is natural that consumers would think about |
| Research from the financial services firm revealed a | | | | tightening their belts this Christmas and this is |
| fall across all of its indices which make up the index. | | | | reflected in the weaker spending index. Going |
| Over the course of November, the expectations | | | | forward into 2008, the expectation of at least two |
| index, which charts people's views about the state of | | | | cuts in the base rate should begin to take pressure |
| Britain's economy and employment prospects, | | | | off finances and restore some confidence." |
| dropped by 14 points to stand at 83. Consequently, | | | | With such a fall in financial confidence noted, now |
| this is the second-largest decrease noted since | | | | could be an ideal time for people concerned about |
| Nationwide began its studies and the lowest level | | | | their ability to manage their money to apply for a low |
| recorded since January. In addition, the present | | | | cost personal loan. In doing so, borrowers could be |
| situation index, tracking feelings about the current | | | | able to meet various demands on their spending |
| economic and employment situation, went down by | | | | quickly, carry out home improvement work and |
| eight points. | | | | finance the perfect Christmas. However, consumers |
| Meanwhile, the number of Britons who believe that it | | | | may be advised to take the time to search for the |
| is a good time to make a major purchase such as a | | | | most competitive deal possible to avoid further |
| car, the buying of which could be funded through a | | | | trouble with spending. Earlier this year, Ron Gainsford, |
| cheap loan, also decreased. More than half (57 per | | | | chief executive of the Trading Standards Institute, |
| cent) of those surveyed believe that it a not good | | | | reported that borrowers should also make sure that |
| moment in which to buy such items, up from the 51 | | | | they get the cheapest loan possible and ensure that |
| per cent recorded in October. In addition, just over a | | | | they can afford to make repayments. |
| third (35 per cent) claim that this is an ideal | | | | |