Consumer morale drops

Trouble on the High Street? Consumer morale dropped last month.
Trouble on the High Street? Consumer morale dropped last month.

By politics.co.uk staff

Consumer morale in July fell as low as May 2009, according to the British Retail Consortium (BRC).

The group reported a 0.5% rise in retail sales in July, compared to 1.2% in June.

Building society Nationwide came to similar conclusions, with consumer confidence falling from 63 in June to 56 in July, according to its indicator.


The drop was probably due to a sharp fall in household sentiment about the economy, the job market and expected income over the next year.

Many analysts believe the government's deficit reduction, which will start with a bang when the spending review is published later this year, is subduing spending as consumers take stock of how they will be affected.

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