UK Consumer Confidence Wanes In November: GfK NOP

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British consumer confidence eased moderately in November, a report from the market research firm GfK NOP showed on Monday.

The consumer confidence index stood at minus 17 compared to minus 13 in the previous month. This is the first decline in the index since January. A year ago, the index stood at minus 35. The annual moving average improved and is now minus 27, the GfK NOP said.

"Given that the government's best chance - indeed probably their only chance - of retaining power in next May's general election is to contest it on the back of several months of economic improvement, this month's consumer confidence figures will come as a real blow," said Nick Moon, Managing Director of GfK NOP Social Research. "After a fairly steady rise throughout 2009, the index is 20 percentage points above where it was at the start of the year, but this month is the first time the index has fallen for over a year."

Four of the five components of the consumer confidence index experienced a marked downturn. The index measuring personal finance situation over the last 12 months fell to minus 14 in November from minus 12 in the preceding month, while the index for the next 12 months fell to 5 from 6. The index assessing the climate for major purchases plunged seven points to minus 19. All the three indexes are at levels higher than a year ago.

Respondents expectations on the general economic situation over last 12 months dropped six points to minus 59, while the index measuring the general economic situation over the next 12 months held steady at 3. Both index readings are better than those for the same month last year.

However, the 'now is a good time to save' measure shed four points to minus 10. The reading is 14 points lower than in November 2008.

The UK Consumer Confidence Survey is conducted by GfK NOP among a sample of 2000 individuals aged 16 and more on behalf of the European Commission. The interviews for the latest survey was carried out between November 6 and 15.

Meanwhile, house prices in the United Kingdom were up 0.2% on month in November, property website Hometrack reported on Monday. On an annual basis, home prices declined 2.9% after the 4.2% contraction in the previous month.

Sellers are now acquiring an average of 93.2% of their asking price, the data showed, up from 92.9% in October. Prices in London were up 0.4% on month, followed by a 0.3% increase in southwest England.

British consumer confidence eased moderately in November, a report from the market research firm GfK NOP showed on Monday. (Market News Provided by RTTNews)