Graph: how Osborne killed our confidence


2:58 pm - July 7th 2011

by Sunny Hundal    


      Share on Tumblr

I’ve repeatedly pointed out that consumer confidence has nose-dived since Osborne took over and unveiled the budget.

This has impacted our own recovery and the long-term prospects for the economy.

Now a graph from Bloomberg shows how stark this has been in a graph..

Via the FT, who also say:

More seriously for Osborne and the coalition, however, they cannot simply blame macroeconomics for the UK slump. At the same time as consumers here have begun to fret again, those in the Eurozone have steadily felt more and more secure.

But it cannot be denied that the government’s words and actions are making consumers far more nervous. That in itself could lead to stagnation. Ministers need to focus on growth and start sending out positive messages, soon.

Ministers could focus on growth if they had any idea about how to do that. But a year later Osborne still doesn’t have a plan, while is colleague Vince Cable is pointing out that the hole is much deeper than anyone realises.

The bump from the Royal Wedding should be short-lived too.

When I argue that Osborne made the economy worse – the proof is clearly there to see, above.

    Share on Tumblr   submit to reddit  


About the author
Sunny Hundal is editor of LC. Also: on Twitter, at Pickled Politics and Guardian CIF.
· Other posts by


Story Filed Under: News

Sorry, the comment form is closed at this time.


Reader comments


1. Henry Crun

I had a good look at that graph. Looks to me that consumer confidence is higher now than when Grodon Brown was in charge.

hmmm.. I wonder if all this austerity business is going to effect our credit rating?

@2 are you arguing that GB’s policies deterred ppl from spending?? Interesting view I guess..

@1 sorry

“consumer confidence is higher now than when Grodon Brown was in charge.” That would be because of the economic meltdown! Brown got some things wrong but did the right thing to get us out of the shit. The graph goes upwards from the crash to the election.
Silly point scoring won’t wash

6. Luis Enrique
7. Leon Wolfson

@1 – Gee, it’s almost like there was a banks crisis (and shush, the Tories wanted even LESS regulation) which hit the UK hard. It’s still the Tory plan which is keeping a foot on consumer confidence.

@1

Did this “good look” involve looking at the blue line too? The recession was global, you can nitpick at what Brown did as much as you want – even though the Tories wouldn’t have done any different (remember Cameron calling for less regulation a year or so before the crisis?). But he clearly didn’t cause the recession.

9. David Hodd

DaveW
“But he clearly didn’t cause the recession.”

I think in his good look at the graph, Henry Crun has seen the cause of the collapse of Lehman brothers, the rise of credit default swap and other exotic gambling bets, the easy availability of credit in America and the rise and fall of the sub-prime mortgage in the states. Oh and somewhere in the graph, he can see Icelandic banks having a debt 6x Iceland’s GDP. Though the graph goes as far back as 2006, Henry Crun can also see the deregulation of UK markets in 1986, the carpet bagging of Northern Rock, and the opening up to UK mortgage lenders the possibilities of market speculation. All of these things, of course are Grodon Brown’s [sic] fault. But don’t ask my why they are his fault, perhaps Herny Crun can explain?

10. David Hodd

…and on the narrow fact of Henry Crun’s comment, he is wrong. UK consumer confidence when Gordon Brown was last in charge, is immediately before the bit that says “Coalition Government takes power in the UK”, a score in the region of -18. The most recent figure on that chart is -25. Consumer confidence in Coalition Britain has never been as high as it was at the time Brown was last in charge.

11. blackwillow1

@1: Is that the best you can come up? If you make the effort when you try to annoy people, do’nt bother. YOU DICKHEAD!

12. blackwillow1

SORRY, ‘If you WO’NT

Yes, clearly UK consumer confidence has fallen below the Eurozone average where it was tracking it pre-general election.

But it’s a big leap to say that austerity is causing the lack of confidence.

For instance, the Eurozone has higher interest rates and lower inflation than the UK. So I could equally (and just as erroneously) say that this graph shows the BoE need to push up interest rates.

“I had a good look at that graph. Looks to me that consumer confidence is higher now than when Grodon Brown was in charge.”

Well Henry, you didn’t look close enough at the dates, did you? Remember that event, the worst financial and economic collapse since the 1930s?


Reactions: Twitter, blogs
  1. Liberal Conspiracy

    In a graph: how George Osborne killed consumer confidence http://bit.ly/q4a1Pl

  2. Steve Hynd

    In a graph: how George Osborne killed consumer confidence http://bit.ly/q4a1Pl

  3. Trakgalvis

    Graph: how Osborne killed consumer confidence | Liberal Conspiracy http://t.co/R396zfI

  4. Tom Marshall

    In a graph: how George Osborne killed consumer confidence http://bit.ly/q4a1Pl

  5. Gavin Duff

    In a graph: how George Osborne killed consumer confidence http://bit.ly/q4a1Pl

  6. Calm Confusion

    RT @trakgalvis: Graph: how Osborne killed consumer confidence | Liberal Conspiracy http://t.co/R396zfI

  7. Chris Keegan

    Gideon's austerity 'plan' is destroying consumer confidence and here's the evidence. http://bit.ly/qxnTso

  8. Jo Bates

    Gideon's austerity 'plan' is destroying consumer confidence and here's the evidence. http://bit.ly/qxnTso

  9. Mili

    LibCon: This government is killing consumer confidence – http://t.co/jSKpY5P

  10. BIG: UK economy ‘could be shrinking’ (updated) | Liberal Conspiracy

    […] plan to cut spending and make consumers even more fearful of future prospects really worked didn’t […]

  11. sunny hundal

    Here are the stats I mentioned on Sky News, @thejamesmax on consumer confidence collapse after Osborne took over http://t.co/26KXXBU

  12. There’s no simple way out of this economic rut, for the left or right | Liberal Conspiracy

    […] the VAT rise has sucked some demand out of the economy and contributed to falling real wages and Osborne’s doom and gloom talk has depressed confidence, but the real impact in terms of public spending cuts is just […]

  13. sunny hundal

    @dlknowles I'm afraid the evidence doesn't indicate that Irish banking crisis etc are to blame http://t.co/VxhShDI

  14. sunny hundal

    @thejamesmax most of it – the cuts have wrecked our economy and consumer confidence http://t.co/RNdoBUNI

  15. sunny hundal

    @anthonypainter @mattzarb @roryweal @greglovelluk or you could just look at consumer confidence index directly http://t.co/LNLBMD91

  16. sunny hundal

    @EvanHD no doubt commodity prices played a part. But fall in growth as economy on uptick v odd, no? See Bloomberg http://t.co/LNLBMD91

  17. Natacha Kennedy

    @EvanHD no doubt commodity prices played a part. But fall in growth as economy on uptick v odd, no? See Bloomberg http://t.co/LNLBMD91

  18. sunny hundal

    @d_blanchflower don't know if you saw this… http://t.co/RNdoBUNI

  19. sunny hundal

    @davidsteven see this graph on how Osborne killed UK consumer confidence (which affected spending/investment) http://t.co/LNLxf2ZR





Sorry, the comment form is closed at this time.