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Reported on Fri, 09 Jun 2006

Spending on the high street remained muted over May, new figures have shown, but taking a business loan could give companies the boost to revive their operations.

The latest consumer confidence index released by Nationwide reveals that a ten per cent fall in high street spending has brought about the lowest levels in the two-year history of the survey.

Indeed, the company claims that the only thing keeping some measure of confidence alive is the prospect of renewed GPD growth later this year, as anticipated by the Treasury.

"With consumers already burdened by high levels of debt, rising levels of individual insolvencies and high energy prices, it is no surprise that consumer confidence remains low," said Nationwide's executive director Stuart Bernau.

He expressed hopes that "perhaps the imminent start of the World Cup and the possibility of success for the England team will help lift spirits and give consumer confidence levels a much needed boost".

Companies feeling the pinch after a quiet year for retail spending could take out a business loan to reinvigorate production.

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