Consumer confidence hits near-record low

By Matt Falloon

LONDON (Reuters) - Consumer confidence in Britain slumped this month to its lowest level since March 1990, when the economy was teetering on the edge of a protracted recession, a survey showed on Monday.

The GfK NOP consumer confidence barometer fell to -34 in June from -29 in May. It was the second lowest reading in the survey's 34-year history and 31 points lower than June 2007.

Britons are less confident about the future health of the economy than at any time in at least 26 years, with the expectations measure for the next year falling to -45 from -39.

"With rising inflation, gloomy forecasts for interest rates and soaring fuel, utility and food prices dominating the front page headlines, it's no surprise that confidence in the general economy is almost in freefall," said Rachael Joy at GfK NOP.

The figures deal a further blow to embattled Prime Minister Gordon Brown who has just completed a year in power with his Labour party facing the risk of defeat at the next election due by May 2010.

Brown built a strong reputation presiding over a decade of economic prosperity as finance minister before taking over from Tony Blair as Prime Minister last year.

He then enjoyed a commanding opinion poll lead over the opposition Conservatives, but has fallen out of favour with voters after the collapse of lender Northern Rock, party funding scandals, unpopular tax changes and growing concerns about the economy.

Most economists do not expect Britain to slip into a recession, despite concerns about the impact of the credit crunch and a housing market downturn.