Lloyds TSB: Consumers feel the pinch

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Lloyds TSB: Consumers feel the pinch

Fri 30th May 2008

Consumers are pessimistic about the economic future, according to a Lloyds TSB survey.

Many expect inflation to rise as much as 3.8 per cent over the coming 12 months, while concerns about employment prospects and job security were also voiced.

Lloyds' May Consumer Barometer reflects the opinions of 2,000 people, the majority feeling the pressure of rising fuel, food and energy costs.

The number of respondents noticing higher prices jumped from 63 per in May 2007 to 90 per cent. Almost as many - 89 per cent - forecast prices to rise further by 2009.

Trevor Williams, chief economist at Lloyds TSB Corporate Markets, says: "Our latest barometer shows that consumers do not believe prices will ease and so inflation expectations for the next 12 months are tipping four per cent."

Dented consumer confidence is also evident in the housing market. The National Association of Estate Agents (NAEA) earlier this week revealed the average number of potential buyers on agents' book had dropped from 249 in March 2008 to 237 in April.

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