UK Consumer Confidence Falls Close to Lowest Level on Record

Consumer confidence in Britain dropped close to its lowest level in more than 3 decades in October as the financial crisis deterred British shoppers, according to a survey out recently. The GfK NOP survey of 2,000 people interviewed recently showed that consumer confidence fell in October to near the lowest levels it has recorded since it began in 1974. The international market research firm said that consumer willingness to make major purchases fell to its absolute lowest level on record, with those surveyed widely agreeing that now is a bad time to buy expensive items like furniture and electrical goods. Consumer spending accounts for around 65% of Britain's total GDP, according to Global Insight, a London-based economic research group. As a result, the profound fall in consumer confidence is further evidence, following the official news earlier this month that Britain's economy contracted by 0.5% last quarter, that the country is heading for a recession, technically defined as two or more quarters of shrinking national income.