UK consumers shaken by war

UK consumers shaken by war

Consumer gloom deepened as war approached

Fears about the war on Iraq pushed UK consumer confidence to its lowest level in seven years ahead of the campaign's start, according to research.

The survey by Martin Hamblin Gfk was conducted between 27 February and 18 March, two days before the start of war in Iraq.

A GfK spokesperson said that, by that point, most people had assumed it was a foregone conclusion that the war would take place.

The Gfk Consumer Confidence Barometer, compiled on behalf of the European Commission, questions people's attitudes to the general economy and to their own economic situation.

The confidence of consumers to spend money is key to maintaining a vibrant economy.

Year of falls

"Both of the personal finance measures have dropped slightly along with expectations for the future of the general economic situation.

"However, perception of the development of the general economy and the current purchase climate has improved slightly," GfK said.

The barometer fell to a reading of negative 10 in March, down from negative nine in February and negative 3 in January.

It is now at its lowest level since December 1995 when it stood at negative 11.

The UK stock market moved lower after the figures were released.