Consumer confidence fell to a four-month low in August as the economy continued to struggle, a Nationwide survey has shown.
The building society said it was a relief the drop was not bigger during a month when many UK major cities hit by the worst rioting in decades and global economic uncertainty hit share prices.
As a result the monthly index fell to 48 from July’s already relatively modest reading of 49.
Nationwide economist Robert Gardner told Reuters: “Further signs that the UK economy is struggling to gain momentum, disorder in a number of English cities and renewed turbulence in global financial markets would all have been expected to weigh down heavily on confidence during the month.
“The relative stability is probably a reflection of the already subdued level of confidence, rather than indicating resilience in the household sector.”
The decline in the Nationwide index mirrors a relatively modest fall in the similar GfK NOP survey for August, which also hit a four-month low.
Nationwide forecasts further sluggish growth and subdued consumer sentiment for several months.
