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Consumer confidence 'falls to new low'
Consumer confidence fell to a "new low" in February as the current economic downturn dampened spirits on the high street, new figures from Nationwide show.
According to the building society, its Consumer Confidence Index fell to 78 points in February, down three from the month before. The index measures consumers' feelings about present and future economic conditions.
The Present Situation Index, which measures how consumers feel about current economic and employment situation, dropped to 76 last month compared to 83 points in January. It found a third of consumers think present conditions are bad.
However, the Expectations Index, which measures consumers' outlook for the next six months, remained static in February at 79 points.
Nevertheless, the Spending Index that looks at people's confidence about making major purchases fell four points to 64 last month. Nationwide said just 11 per cent of consumers thought now was a good time to make a big outlay.
Martin Gahbauer, a senior economist with the company, said: "The continued downward trend in consumer confidence is to be expected given the effect of higher food and fuel costs on people's pockets and the tightening of the availability of credit."
Nationwide is the world's largest building society and UK's second-biggest savings provider.