Wage levels and lack of jobs reducing consumer confidence
It seems that the most important factors worrying the UK and its economic recovery is the lack of jobs available and deflationary wages.
A recent report made up from 1,002 people questioned between 21 March and 21 April has shown that consumer confidence continued to fall during April amidst peoples further concerns over the state of the UK economy and the belief of a lack of jobs.
Nationwide’s consumer confidence index indicated that it fell to 43 which means a drop in the index of two points on the previous month. This is a worrying statistic since the record low was reported in February 2011 when it stood at 39.
Nationwide’s chief economist, Robert Gardner believes “Consumer confidence remained subdued in April and continues to hover precariously close to the record low seen in February.
“At 43, the index stands some 32 points lower than at the same stage last year, and 37 points below its long-run average. It is a stark reality that the change in government economy tactics and the short relief of the end of recession has done nothing to boost people’s assurance and to invest in the UK economy.
Robert continues “Clearly, consumers are still feeling downbeat about the current situation and there is little to suggest that they expect things to improve much over the coming months.”
For all the Chancellor George Osborne’s budget and figures this report suggests that the UK’s economy return to growth pattern set for the first quarter didn’t effect in the anticipated fashion. While sluggish wage growth, high unemployment, continued food and fuel price increases haven’t relieved the man on the street’s wallet.
Looking at the report in more detail makes for an interesting view of how the average UK person sees the UK economy now into the near future.
Around 69% of people think the current economic situation is bad, with just 5% rating it good, while 67% of people do not think there are many jobs available.
Looking forward, 18% of people think the economy will have improved in six months’ time, but 39% think it will still be bad, and 41% think it will be neither good nor bad.
Around 58% of people think there will still not be many jobs available six months down the line, and 19% think their household income will be lower, while 65% think it will be unchanged.
Confidence has been falling gradually during the past 12 months back towards the levels seen during the recession; let’s hope that something more positive will come from the summer months and maybe encouraging generation from areas in the country to kick-start an upward trend throughout the UK.