Consumer confidence in Britain fell slightly in March as concerns about rising interest rates made consumers unsure about buying major items, a survey showed on Tuesday.
Research company Martin Hamblin GfK said its consumer confidence barometer fell to -3 this month from February's -2.
Analysts had predicted the index would remain at -2 although the reading, which is not seasonally-adjusted, tends to fall one point between February and March. The company said the train bombings in Madrid may have had some impact but the index had not moved that much.
Despite the decline, the headline number was much better than the same month a year ago when it stood at -10 before the Iraq war.
The one point fall in the index figure is principally driven by a further decline in the major purchases measure whose index fell to +9 this month from +14 in February due to rate hike speculation. "Consumers are still unsure about making major purchases," said Roger Wright, director of Martin Hamblin GfK.
"The rise in interest rates and possible expectation of further rises in 2004 may still be affecting consumer mood. The impact of the budget and the bombings in Madrid may also have played a part in this month's decline," he said.
The Bank of England has raised borrowing costs twice since November and economists believe the next round of tightening might not be far off.
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