Consumer confidence drops for fifth consecutive month

GfK research prompts fears of a return to recession
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GfK’s latest report has revealed that consumer confidence has fallen for the fifth month in a row, with its score dropping to -22.

GfK says that the report may indicate a looming double-dip recession: “Given that consumer confidence measures are normally good predictors of what the economy itself will do a few months later, the continuing slide in the Index makes a double dip recession look more of a possibility as each month goes by,” said the managing director of GfK NOP Social Research, Nick Moon.

“It’s possible that respondents are already factoring into their view of the economy over the next 12 months the likely recessionary impact of the government’s announcement about the level of spending cuts it wishes to make, but if they are not then the prognosis is even more gloomy.”

The monthly report surveys consumer attitudes towards their personal financial situation for the next year, their feeling on the general economy over the last year and their concerns for the general economy in the year ahead.

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