Consumer confidence hits seven year low

The index reached -41 points, down from October's level of -35. This is lowest level recorded since the index began in May 2001, it said.

"People assess the present situation adequately. They started to realize that their expenses on electricity and natural gas are set to increase," Vilija Tauraite, chief analyst at SEB Bankas, told the Baltic News Service.

People also take into consideration an anticipated hike in the value added tax and other measures set out in an anti-crisis plans that is being drawn up by the incoming center-right coalition government, she said.

The consumer confidence index measures the degree of optimism on the state of the economy that consumers are expressing through their activities of savings and spending.

The analyst said that the consumer confidence index could fall further.

"I don't think this is the bottom," she said, noting that people are following economic news more closely than they did in 2001 and are quite well aware of the current economic problems.

The Statistics Department said that the decline in November was due to expectations of rising unemployment and growing pessimism among the population about the country's economic prospects and their household finances.

Year-on-year, November's consumer confidence index plunged by 33 percentage points.