British consumer confidence hits record low, BRC finds

by Dave Keating | June 9, 2008 at 01:17 am

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UK retailers are in a panic as study after study shows that consumers are going to be hoarding their cash for some time. A drop in consumer spending power, a bad job market and general economic malaise have contributed to a general belt-tightening in the public mood.

Consumer confidence has slumped to a record low according to the British Retail Consortium, as rising costs and falling property values add to Britons fears that the UK is heading into a recession.

One in five people surveyed by the BRC and market research group Nielsen said that they have no spare cash, and are cutting back on even non-essential spending.

In a blow for Britain's retailers, the BRC found that clothes, footwear, furniture and new technology are the high street's biggest casualties as consumers attempt to rein in their spending