Consumer confidence drops in UK and USA
Spending falls on both sides of Atlantic
June 29 2002
Fear of tougher times ahead has hit consumer confidence in both the UK and USA, according to new figures.
In the UK, household disposable income fell by 0.5 per cent in the first quarter of 2002, according to the Office for National Statistics. This is a five-year low, and reflects a fall in household income.
Meanwhile, the US Commerce Department released official figures showing personal spending fell by 0.1 per cent in May after five months of growth. The report tallies with figures from a number of US retailers showing a fall in sales last month.
The University of Michigan’s monthly index of consumer confidence also showed factors such as stock market fall and job insecurity taking a toll on consumers’ optimism.
