UK consumer confidence falls

CONSUMER confidence in the economy's prospects has shown its sharpest monthly drop since last August, according to the latest survey by Gallup for the European Commission.

The drop reverses the rise in optimism seen in January and is the first fall since the aftermath of Britain's departure from the ERM.

Consumers are also more pessimistic about their own financial circumstances and about rising inflation, following the boost to import prices from the pound's fall.

Hopes that January's surge in retail sales will continue received a blow from a fall in the balance of consumers who believe this is a good time to make large purchases.