Spending confidence drops

As the middle classes feel their incomes squeezed by high inflation and pay freezes, consumer confidence has fallen, it has been revealed to those interested in payday loans.

Mark Saddleton, Nationwide's head of economic and market analysis, revealed that at 51 points, the consumer confidence index now stands 11 points lower than this time last year and 28 points below its long-run average.

However, he said that the index has stabilised following a period of continuous falls.

"Consumers are still facing challenging conditions with high inflation, fuel prices and unemployment weighing down on household budgets and sentiment. Combined with weak wage growth, spending power continues to be eroded," the expert added.

Mr Saddleton went on to say that with all these factors, it is unsurprising that confidence in purchasing big ticket items has dropped as people are less keen to take out credit.

Meanwhile, the Association of Mortgage Intermediaries has revealed that the mortgage market is stable but warned that there may be more bumps in the road.

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2011-07-21 16:47:30 © Moneyextra.com