Optimism levels hit 25 year low

According to a recent report optimism levels amongst consumers in the UK have fallen to their lowest in 25 years, with many people now pessimistic about the economic outlook for Britain, which has highlighted the rising risk of recession.

The results came from a recent survey of over two thousand people, and showed that optimism levels are at their lowest since 1983. There are already huge concerns over the housing slump, which has been made worse by the effects of the credit crunch, as well as fears over recession.

In addition to this worries over rising inflation are also taking their toll, and recent figures showed that retailers had hiked up their prices in May at the fastest pace in sixteen years. The concerns over inflation saw the Bank of England keep rates on hold earlier this week following the Monetary Policy Committee meeting.

A recent report from the credit reference agency Experian showed that the number of people visiting shops in May fell by 1.5% compared to the same period last year. Many experts think that the fall in house prices has had a dramatic impact on both consumers spending and confidence levels.