LONDON (Reuters UK) - Consumer confidence fell for a sixth month running in June as the economic outlook darkened, a survey showed on Wednesday.
The Nationwide consumer confidence index fell four points to 61, taking it to the lowest since the series began in May 2004.
Sterling fell against the euro as investors warmed to the view that the economy may be teetering on the verge of recession.
"There's been a downpour of poor data and things are not getting any better for sterling," said Geralding Concagh, economist at AIB Group.
"Certainly the outlook for the economy is deteriorating."
Wednesday's news from the corporate sector was equally grim. The chief executive of Bovis Homes (BVS) told Reuters the housing market downturn felt "an awful lot worse" than even the recession of the early 1990s and house builder Redrow (RDW) said it planned to cut 40 percent of its workforce.
A survey from the Chambers of Commerce on Tuesday showed a sharp deterioration in business conditions, with confidence, hiring intentions, sales and orders in the services sector falling to their lowest level since the early 1990s.
Nevertheless, the detail of the Nationwide survey was less downbeat with falling confidence doing little to alter Britons' spending plans.
The spending sub-index remained steady at 60 and the percentage of respondents who thought now was a good time to make a major purchase rose four points to 18, the highest level since July 2007.
There was also little sign that the economic gloom was translating into greater job insecurity. Thirty-seven percent of respondents thought jobs would be plentiful in six months' time, the second consecutive monthly rise.
The biggest change regarded the economic outlook with 53 percent of respondents expecting things to be worse in six months' time. That compared with 46 percent in May and just 29 percent a year ago.
"This month's drop in confidence is to be expected given the recent run of bad news," said Fionnuala Earley, Nationwide's chief economist.
"With reports of rising inflation rates, weaker economic growth and further falls in house prices, it is not surprising that people are feeling much less optimistic about the future."
(Editing by Mike Peacock)
