Two-thirds are gloomy about the economy

Around two-thirds of British households are downbeat about the current economic outlook, it has been revealed to those seeking payday loans.

A study by Markit of 1,500 households in England, Wales and Scotland revealed that the number of people expecting the economy to deteriorate outnumber those predicting an improvement by three to one.

Overall, high earners based in the south were found to be the most optimistic about the coming year, while those in the lowest income bracket were found to have the gloomiest outlook.

"Whether growth will pick up again in the second half of the year will much depend upon whether confidence improves. However … we have yet to see the consumer mood lighten, and consumer spending may well therefore continue to act as a drag on the economy in the second half of the year," said Chris Williamson, chief economist at Markit.

Meanwhile, Peter Mandelson last night admitted that the Labour government may have worsened the recession due to overexposure to the financial sector.

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2011-07-27 14:35:11 © Moneyextra.com