Consumer confidence fell across all measures in June as the result of the General Election dampened shoppers’ inclination to make big-ticket purchases.
According to the latest figures from GfK’s confidence barometer, overall UK consumer confidence this month dropped five points to -10, just two points away from last year’s post-Brexit low of -12.
All five measures on the index posted a decline, with the biggest drop coming from the Major Purchase Index, which dropped eight points to +1.
Shoppers’ perception of the general economy over the last year took a hit, falling five points to -25, down 12 points year-on-year.
Confidence in the general economy in the year ahead dipped two points to -23, down nine points year-on-year.
GfK’s head of market dynamics Joe Staton 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 reflecting our increased caution over non-food spending and our softening appetite for debt.
Staton added: “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.”
Shopper confidence in their personal finances also declined, down three points to -1 over the last 12 months and down four points to zero for the year head.