Consumer confidence hits trough: GfK Martin Hamblin |
|
|
|
Published
:
Fri, 01 Jul 2005 09:35
|
There’s bad news and more bad news for the economy. As if the fact that the retailers and manufacturers alike have become downcast was not enough, a new survey has shown that the consumers too have joined them.
The survey conducted by market research firm GfK Martin Hamblin shows that consumer confidence has continued to plummet for this the third month in a row. The consumer confidence stood at a dismal -3 for the month of June, though this is slightly better than the -4 registered in June last year. The index, which measures the consumer perception about the state of the economy, fell from -13 in May to -18 in June. The consultancy polled 2,012 people between June 1 and 20. This survey was conducted under the aegis of the European Commission.
The director at GfK Martin Hamblin, Reza Chady observed that people were cautiously optimistic about their personal finances, but were downright negative when it came to the economy in general, “It is the declines in perceptions of both the general economic situation over the last as well as next twelve months which have driven this month’s two point decline,” Chady said.
As far as the next 12 months are concerned, the outlook is about the same with the index registering -10 in June as compared to -7 in May. GfK said that most people reckoned that it was a good time to save; the barometer registered a plus 28 in this regard. Consumers are also in the mood to postpone major purchases. The index showed a plus 4 in this regard as against plus 5 in May and plus 12 in April.
Analysts are predicting more gloom for the markets. This survey has led them to believe that the consumer would continue to rein in spending and that the market would not register any growth in the foreseeable future. John Butler, who is an economist at HSBC, feels that this survey shows that the existing slow down is deeper than previously estimated.
|
|
|
|
|
|
Print this Story
