British consumer confidence plunges

London: British consumer confidence plunged the most since 1994 this month as an increase in sales tax hurt shoppers’ appetite for spending, a report by GfK NOP showed.

The index of sentiment fell 8 points from December to minus 29, the lowest since March 2009, the research group said.

All five measures of the index fell, with a gauge on the climate for making major purchases dropping 22 points to minus 29.

Prime Minister David Cameron, who raised value-added tax to 20% from 17.5% this month, has vowed to stick to planned spending cuts to reduce the budget deficit even after the economy unexpectedly shrank in the fourth quarter.