–UK Nationwide June Consumer Confidence 63 Versus 66 in May
–UK Nationwide June Expectations Index 88 Vs 94 in May
–UK Nationwide June Spending Index 95 Versus 100 in May
–Austerity, BP, EMU Crisis Cited As Factors In Deterioration

LONDON (MNI) – UK consumer confidence eased in June for the second
month in a row with the UK’s emergency austerity measures, industrial
action at British Airways and the BP oil crisis all cited as factors in
the deterioration, according to UK lender Nationwide’s monthly consumer
confidence index.

Nationwide said that the level of confidence is now 21 points below
the peak seen in February this year at 63, down from 66 in May.

Only the present situations index showed an increase while the
expectations and spending index fell back to their lowest levels since
May 2009 and January 2009 respectively.

The Present Situation Index, which reflects sentiment on the
current economic and employment situation, rose a slightly to 24 from 23
prior. The Expectations Index, which reflects at economic sentiment over
the next six months, fell to 88 against 94 the month prior. The index
has shed 32 points since February.

The June Spending Index fell to 95, the lowest level since January
2009, and compares to 100 in May.

Martin Gahbauer, Nationwide’s chief economist, suggested that
consumer fears in the run-up to the emergency budget could have
depressed confidence. with the government’s emergency budget now out of
the way, confidence could well start to stabilise:

“The downward trend that we have seen in recent months extended
into June as consumers continued to express caution towards the future
situation. With the emergency Budget taking place late in the month,
this lack of optimism may have been a product of consumers hypothesizing
over how the new Chancellor would address the UK’s budget deficit. It
will not be until July’s results, however, that we could potentially see
what impact the Chancellor’s package of austerity measures has had on
confidence. With the coalition government now established and greater
clarity about future fiscal plans, it may be that we begin to see
confidence stabilise somewhat in the coming months following a period of
political uncertainty”.

–Stephanie Sprague is a journalist with Need To Know News; email
Stephanie.sprague@ntkn.com

–London newsroom: 4420 7862 7499 email: ukeditorial@marketnews.com

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