Consumer confidence 'on ice'

Consumer confidence is unlikely to increase but will remain "on ice" until after the spring General Election, it has been predicted.

The British Retail Consortium recently reported that last month saw the worst January sales growth for 15 years.

Indeed, UK retail sales values fell by 0.7 per cent on a like-for-like basis from January 2009, when sales had risen by 1.1 per cent.

Overall, sales rose 1.2 per cent against a 3.2 per cent increase in January 2009.

Meanwhile, Nationwide reported this month that consumer confidence increased in January 2010 by three points to 73 - almost double the level of confidence recorded during the same period last year (39 per cent), although it could be said retail activity does not reflect this.

Commenting on the news, Stephen Robertson, director general at the British Retail Consortium, said: "My instinct says actually the return of confidence has gone as far as it is going to go for now and I think it is on ice until we see the results of the election."

Speaking at the Totally DIY show at the Birmingham NEC, he added consumers were unlikely to get more enthusiastic before then.

Britons who are keen to ensure they save money as the economy emerges from the recession may wish to consider flats to rent in Shoreditch or another part of London.

With house prices typically far higher in the capital than elsewhere in the UK, renting could be a more affordable option which affords people time to save.

Written by Andy Britten

Published 10th February, 2010

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