British consumer confidence slips affected by interest rates

In Britain, a monthly survey by Martin Hamblin GfK, shows that the consumer confidence index slipped for February, affected by the Bank of England's quarter of a percent rate hike early this month.

The GfK's headline consumer confidence index fell to - 2 in February from January's zero reading.

The drop in optimism was largely driven by a decline in the number of people saying that now is the right time to make major purchases.

This comes on the heels of a report last Tuesday by investment bank, Durlacher, predicting that British house prices may fall by up to 30%, due to a flood of investors purchasing property on a buy-to-let basis.

The sub-index measuring the climate for major purchases fell 8 points to +14 from +22 in January.

GfK said the BoE's second interest rate hike in four months was a factor.

The survey also revealed that a greater number of consumers believe it is now the right time to start saving.

The sub-index measuring saving intentions rose to its highest since May 2001.