Consumer confidence deflates on inflation fears

Posted 2008-02-7

The recent rise of inflation in the UK is hurting more than consumer pockets. A Consumer Barometer from Lloyds TSB Corporate Markets shows the number of consumers expecting interest rates to be higher rather than lower grew by 2% last month.
Trevor Williams, chief economist with Lloyds TSB Corporate Markets, asserted that even an interest rate cut this month may not help boost consumers’ confidence. The financial services provider connects the rise of consumer doubts in January, which was the first increase in six months, with the increasing culture of worry in Britain.Mr. Williams stated, “As far as consumers are concerned, any respite granted in interest rates today will be short-lived. Even so, if we do see a cut this will ease the burden of interest payments and as such will help boost economic activity.”
While the economy is teetering on uncertainty, consumers and credit card holders may find debt consolidation loans useful in taking control of their financial instability. According to uSwitch.com, debt consolidation loans can be a help to consumers struggling with the impact of fewer available funds.

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