A long-running index measuring consumer confidence dropped by five points in June to -10, reflecting negative sentiments about personal finances and the wider economy.
GFK’s Consumer Confidence Index, which is based on surveys before and after the General Election, found that all five measures dropped in June, taking the overall score to just two points away from last year’s post-Referendum low of -12.
Joe Staton, head of market dynamics at GfK, said: “The scores on the general economic situation looking forward and back 12 months are now particularly weak. All this concern will worry the UK’s retailers, with this month’s plunge in the Major Purchase Index (down eight points) reflecting our increased caution over non-food spending and our softening appetite for debt.
“Strong consumer spending has propped up the economy since last June but now the twin pressures of higher prices and sluggish wage growth are squeezing household finances and adding to widespread fears of a Brexit-induced economic slowdown.”
The index measuring changes in personal finances during the last 12 months decreased by three points in June to -1; this is seven points lower than this time last year.
The forecast for personal finances over the next 12 months four points to zero; this is eight points lower than June 2016.
The measure for the General Economic Situation of the country during the last 12 months has decreased five points to -25; this is 12 points lower than June 2016.
Expectations for the General Economic Situation over the next 12 months decreased two points in June to -23; this is nine points lower than June 2016.