LONDON (ShareCast) - The soaring cost of food and bigger energy bills have bashed consumer confidence by the most ever in July, according to a report from the Nationwide.
The building society's consumer confidence index slumped 11 points to 51 last month, the biggest fall since the survey began in 2004.
"Talk of the increasing chances of a recession, more weakening in the housing market and the continuing rise of food and energy costs will have further dented confidence as will reports of job losses," said Nationwide's chief economist Fionnuala Earley.
"Falling oil prices and lower fixed mortgage rates offer some good news, but a cut in the bank base rate is still unlikely this summer," she said.
But there was a three way spilt at July's meeting, making Thursday's outcome less certain. Timothy Besley argued for a rise to help combat inflation, while perennial dove David Blanchflower voted for a quarter point cut.
Today's Nationwide data also revealed that 64% of people surveyed think now is a bad time to buy big items like houses and cars.
Source: http://uk.biz.yahoo.com/080806/214/i4f7a.html
