U.K. consumer confidence unexpectedly dropped to a four-month low in November as looming public-spending cuts dented Britons’ outlook for 2011, a report by GfK NOP Ltd. showed. The index of sentiment declined 2 points to minus 21, the research group said in an e-mailed statement in London today. Economists predicted no change from minus 19 in October, according to the median of 13 forecasts in a Bloomberg News survey. A measure of sentiment on the economy for the coming year fell 2 points to minus 22. Britain faces the biggest fiscal squeeze since World War II to tame the record budget deficit, prompting the loss of 330,000 public-sector jobs by April 2015. The Treasury’s fiscal watchdog yesterday cut its economic growth forecast for 2011 and said the U.K. faces a “sluggish” recovery. The report “is clearly not good news,” Nick Moon, managing director of GfK NOP Social Research, said in the statement. “What is more worrying in this month’s figures is that the worst-performing elements of the index are those that look to the future.” A gauge of Britons’ views on their personal finances for the coming 12 months fell 5 points to minus 7, and a measure covering the last year held at minus 13. An assessment of the country’s general economic situation in the last 12 months fell 3 points to minus 46. A gauge on the climate for making major purchases fell 2 points to minus 17. GfK NOP conducted the survey of 1,999 people from Nov. 5 to Nov. 14. OBR Forecasts The Office for Budget Responsibility cut its 2011 growth forecast for the U.K. to 2.1 percent from 2.3 percent. The government watchdog still reduced its forecast for public-sector job losses from a June estimate of 490,000 and raised its projection for growth this year to 1.8 percent from 1.2 percent. The outlook for the economy has divided Bank of England policy makers, who decided this month to leave their bond purchase plan at 200 billion pounds ($311 billion) and the key interest rate at a record low of 0.5 percent. One member, Andrew Sentance, has been calling for higher interest rates since June to stem inflation, while Adam Posen maintained a push for a second month to boost bond purchases to stoke growth. To contact the reporter on this story: Jennifer Ryan in London at jryan13@bloomberg.net To contact the editor responsible for this story: John Fraher at jfraher@bloomberg.net

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