OSLO: Norwegian consumer confidence fell to its lowest level since the spring of 2009 in the first quarter as weak oil prices eroded household confidence in the economy, a survey by financial lobby group Finance Norway (FNO) showed on Wednesday.
The seasonally adjusted confidence index dropped to 7.4 points in the first quarter from a revised 13.6 in the fourth quarter, the FNO said in a statement. The fourth quarter reading was originally reported at 15.4 points.
Of the five indicators used to compile the index, the assessment of the overall economy's performance over the last year and expectations for the coming twelve months were the weakest.
"The big drop in oil prices has clearly made a strong impression on people," FNO Chief Executive Idar Kreutzer said in a statement.
Norway earns about one fifth of its economic output from the oil industry.
Most participants still said they did not expect their own personal finances to worsen much though.
"Many have utilised, and will utilise, the big drop in interest rates as an opportunity to reduce their debt and thereby also their own vulnerability," Kreutzer said.
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