Consumer morale hits series low in April

LONDON (Reuters) - Consumer morale fell in April to its lowest since records began four years ago as confidence in the economy continues to slide, the Nationwide building society said on Wednesday.

Nationwide's consumer confidence index fell to 70 last month from 77 in April. That was the lowest since the survey began in May 2004.

The seven-point drop was also the second-biggest monthly drop in the survey's history and reflected a sharp decline in the current situation index. The expectations index and the spending index also fell but by a smaller amount.

"The cut in interest rates in April did little to lift consumer spirits," said Fionnuala Earley, Nationwide's chief economist.

"Food and fuel prices remain high and with house prices no longer rising it is unlikely that consumer confidence will pick up very quickly."

The figures chime with others in suggesting that recent interest rate cuts have done little to ease the credit squeeze. A survey by GfK/NOP last week showed consumer confidence fell last month to its lowest level since the recession of the early 1990s.

(Reporting by Christina Fincher)