Consumer confidence falls again.

shortchanged_2

http://www.bbc.co.uk/news/business-15398855

The recent figures from the ONS seem to miraculously buck the trend of consumer confidence.

How does the UK economy manage to miraculously show growth in these tough, austere times?

At this rate George Osbourne could well be hailed as the new Messiah.

And if that's the case I suppose Cameron would be the next John the Baptist.

lemonjelly

The big test will be christmas. Many have expected there would be belt tightening in previous christmases (sp?). That hasn't happened in the last 2 years.

I seem to recall that something like 70% of high street business is around december/christmas. So it'll be interesting to see what happens this year. Will people go out & splash out? (They did the last 2 years)

Time will tell.

Rinoa

shortchanged wrote: »

http://www.bbc.co.uk/news/business-15398855

The recent figures from the ONS seem to miraculously buck the trend of consumer confidence.

How does the UK economy manage to miraculously show growth in these tough, austere times?

Maybe peoples actual financial circumstances have changed little. They clearly still have money to spend. Perhaps the medias daily attempts to find negative viewpoints on every economic issue skews the confidence index more than is warranted.

shortchanged_2

Rinoa wrote: »

Maybe peoples actual financial circumstances have changed little. They clearly still have money to spend. Perhaps the medias daily attempts to find negative viewpoints on every economic issue skews the confidence index more than is warranted.

Maybe you're right or it could just be that people are actually starting to realise that things aren't all that good and the way ahead looks pretty grim.

Really2

shortchanged wrote: »

The recent figures from the ONS seem to miraculously buck the trend of consumer confidence.

How does the UK economy manage to miraculously show growth in these tough, austere times?

I dare say europe is a drain on confidence.
But people still need to buy things and still seem to be spending despite having less confidence in the economy at the moment.

Perhaps people realise they can't do anything, so are just carrying on although although less confident in the outlook at the moment.

shortchanged_2

lemonjelly wrote: »

The big test will be christmas. Many have expected there would be belt tightening in previous christmases (sp?). That hasn't happened in the last 2 years.

I seem to recall that something like 70% of high street business is around december/christmas. So it'll be interesting to see what happens this year. Will people go out & splash out? (They did the last 2 years)

Time will tell.

I think you're right on this point lemonjelly.

I wonder if many people have put money aside for Christmas this year because if not I don't forsee a major splurge on credit this year.

Really2

shortchanged wrote: »

Maybe you're right or it could just be that people are actually starting to realise that things aren't all that good and the way ahead looks pretty grim.

From my personal view I have been cutting back and saving where I can for three year now.
Paid down/saved a hell of a lot and I am getting to the point of thinking

"forget this, it cold go on for years. May as well start living again"

I am sure I am not the only one.

Although I am proud of what I have done, it would be pointless doing it forever.

shortchanged_2

Really2 wrote: »

I dare say europe is a drain on confidence.
But people still need to buy things and still seem to be spending despite having less confidence in the economy at the moment.

Perhaps people realise they can't do anything, so are just carrying on although although less confident in the outlook at the moment.

Yes but it would be quite normal during tough times for people to reign in their spending, such as not buying non essentials and luxury items which people probably would purchase during better economic times.

Well if people are cutting back on these items how can there actually be any growth? It doesn't really all add up does it.

Really2

Looks like my post above, sort of fits in with your post.

Car production up still, so it still looks like people are spending on luxury items still.

Pimperne1

Bit of a waste of time this index. They surveyed 1001 people but this is what their index has done in the past year since Oct 10:

Down 11
Up 6
Down 6
Down 8
Up 7
Down 1
Up 15
Down 7
Down 5
Down 2
Even
Even
Down 1

shortchanged_2

Really2 wrote: »

Looks like my post above, sort of fits in with your post.

Car sales are on the up still, so it still looks like people are spending on luxury items rather than raining it in at the moment.

Where are you getting your information from?

http://search.independent.co.uk/topic/car-sales-figures