Investor confidence has fallen for the third consecutive month according to research figures released today.
The JP Morgan Asset Management UK Confidence Survey for May says the number of people that were negative about the performance of the Stock Market increased from 18% in April to 22% last month.
Respondents to the survey cited pessimism over economic conditions (27%) fear of falling house prices (18%) and the high price of oil as the main reasons for their lack of confidence. Consumers were also evenly split over the future of interest rates with 19% of positive respondents believing interest rates have peaked and were likely to fall compared to the same number again who thought interest rates could still rise.
Demand for equity products has fallen alongside the dip in confidence according to the report, which claims likely investors are more inclined to choose a fixed income product (29%) rather than an equity (22%). Both of these figures stood at 24% in April, says JP Morgan.
Jasper Berens, UK Sales Director at JP Morgan Asset Management, says: "Contributing factors to this slip in confidence include house prices continuing to cool, a fall in consumer spending, rising inflation and slowdown in manufacturing activity. However, of those who were more positive about the future of the stock market, over half (54%) felt this would be caused by good economic conditions.”IFAonline
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