Consumer confidence in London has fallen for the third month running, a report says.
Although confidence in London is higher than the national average, the optimism brought about by the royal wedding and the summer weather has now faded and has been replaced by fears over the US and eurozone debt crises.
London’s reading for August was minus 29, the same level it was measured at in April, according to GfK NOP’s research. This reading is seven points below July’s level and some 20 points down on August last year.
Consumer confidence across the country has fallen by one point on July’s figures and the reading is now down 13 points compared to the same month last year.
GfK NOP Social Research managing director Nick Moon said: “The index has fallen for the third month in a row and consumer confidence is down to minus 31, where it was in April this year.
“Previously, it had only been as low on two other occasions: during the downturn of 2008 and 2009 and in the turbulent early months of 1990. On both occasions, the decline in consumer confidence mirrored a slide into recession.”
Londoners were gloomy about their personal finance situation over the past 12 months, recording a measurement of minus 20, although this is still some 11 points higher than the national average, according to research.
People in the capital were also more optimistic about their personal finances over the next 12 months than the national average. Londoners recorded a measurement of minus seven, four points above the national average of minus 11.
Moon continued: “With an increasing number of indicators suggesting the economy is either stagnating or returning to recession, the continuing loss of consumer confidence is a major worry for the government.
“However, while there has been a four-point drop in consumers’ general view of the economic situation over the next 12 months, there has been a small improvement in how they view their own financial situations, suggesting that people are adapting to the austere economic climate.”
Londoners’ perception of the general economic situation was measured at minus 57 in August, the same level as the national average. The measurement of people in the capital’s outlook on the general economic situation for the next 12 months was measures at minus 31, also in line with the national average.