Low consumer confidence could signal repossessions upturn

Wed, 21 Sep 2011

Sustained low optimism among UK adults could indicate many people are struggling to cope financially across the nation - which could in turn lead to an increase in repossessions.

According to Nationwide's Consumer Confidence Index for August, such pessimism remains following a marginal decline in sentiment during the four-week period.

Robert Gardner, chief economist at Nationwide, noted a number of factors are adding pressure on household finances at present.

The industry figure explained: "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."

He observed the relative stability of the index is better explained by a subdued level of confidence as opposed to increased resilience in the household sector.

The findings come after the Building Societies Association recently suggested the government, the industry and consumer groups need to adopt a joined-up approach in order to prevent further home repossessions.

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