Consumer mood sours further in May

Consumer confidence fell further in May as people got even gloomier about the current state of the economy, a survey showed on Wednesday.

The Nationwide consumer confidence index fell by 1 point to 69, continuing a decline that started in September 2007 in the wake of the global credit crunch.

"Consumer sentiment remained gloomy in May as consumers revised their views about the current economic situation," said Fionnuala Earley, Nationwide's chief economist.

"Darker economic news throughout the month as fuel prices reached new highs, food prices remained elevated and uncertainty about an early cut in interest rates heightened, are likely to be major factors behind this."

But so far the gloom is not translating into much greater job insecurity. People's view about the future employment situation with only 1 in 3 thinking there will be few jobs in six months' time.