Higher interest rates are likely to be the major factor behind this, according to a Nationwide Consumer Confidence Index in partnership with TNS report. The survey found that consumers will be tightening their belts in the months to come. The Spending Index, which measures consumers' tendency to spend, increased slightly in June, however it still remains broadly flat, in comparison with the previous six months.
Nationwide chief economist Fionnuala Earlet said: 'Consumers' outlook for the next six months is fairly subdued and much lower than this time last year. This is driven by a less optimistic feeling about the future economic situation.'