2013.10.3100:40:00UTC+00British Consumer Morale Falls For First Time In Six Months

Confidence among British consumers slipped for the first time in six months in October amid increased concerns about their personal finances and the prospects of the general economy, the results of a survey released by market research group GfK NOP showed Thursday.

The GfK's consumer confidence index slipped to -11 in October from September's six-year high of -10. Economists expected the reading to improve to -8.

Consumers' one-year ahead expectations about their personal finances worsened in October, largely reflecting continued squeeze on income amid low wage growth. Pay growth has been lagging inflation over the past few years.

Moreover, the survey was conducted between October 4 and 20, when some of the largest energy firms announced sharp price rises for both electricity and gas. This is also likely to have dented confidence.

Britons' expectations for the general economy also weakened this month. Nonetheless, they were more upbeat about making big-ticket purchases.

UK high street sales stalled in October after three consecutive months of growth, dampening retailers' expectations for another solid rise, the latest survey from the Confederation of British Industry showed Monday.

Despite the weakness in the retail sector, the housing market is witnessing a strong recovery riding on the optimism generated by the government's 'Help-To-Buy' scheme. Data from the Bank of England revealed Tuesday that UK mortgage approvals increased to the highest level since February 2008 in September.

The economy expanded 0.8 percent sequentially in the third quarter of 2013, the fastest rate since the second quarter of 2010, preliminary data from the Office for National Statistics showed last week.