British consumer morale fell for a fourth month running in October with shoppers more reluctant to make major purchases than at any time since 1995, a survey showed today.
Research group GfK NOP's consumer confidence barometer fell to -8 in October from -7 in September. This was in line with analysts' forecasts and prompted little market reaction.
The decline takes the overall index to its lowest since March and suggests higher mortgage payments and tougher credit conditions are forcing shoppers to tighten their belts.
The climate for major purchases index fell to -5 from -3 in September. This measure, which was +6 in October last year, is now at its lowest level in nearly 12 years.
There was also a small deterioration in people's views on both their own financial situation and the economy over the last 12 months.
However, people were more upbeat in their forecasts for the coming year, suggesting a more positive outlook for the future. Analysts also noted that October's reading was above the low registered in the aftermath of last month's Northern Rock bank crisis.