Consumer turned very pessimistic in the United Kingdom in January as the VAT increase took effect and further austerity measures are expected to cost many jobs amid a fragile recovery and high inflation.
GFK NOP Ltd said Consumer Confidence index plunged the most in the kingdom since 1994; the index lost 8 points to -29 in January the lowest since March 2009. All five sub-indices within the index slumped and the index gauging the tendencies for making major purchases slumped a hefty 22 points to -29.
The measure of the general economic condition for the next 12 months declined 7 points to -30; while the index gauging Briton's expectations for the year for their personal finances fell to -12 by four points.
The survey was conducted on 2,000 people in the period from January 07 to 16.