However, people’s expectations for the housing market were slightly more upbeat. They expect house prices to remain flat over the next six months, where over the previous nine months they had expected prices to fall.
Nationwide’s confidence index fell four points to 51 between May and June, which is 28 points below its long-run average and 11 points below the same period a year ago.
The index rose 11 points in May a boost from the Royal Wedding, warm weather and bank holiday season, but fell back in June.
Mark Saddleton, Nationwide’s head of economic and market analysis, said: “It continues to be consumers’ expectations towards the future situation which is primarily influencing the direction of the Index month-on-month.
“Consumers are still facing challenging conditions with high inflation, fuel prices and unemployment. Combined with weak wage growth, spending power continues to be eroded and placed under significant pressure making it difficult for consumers to drive the recovery forward.
“With this in mind, it is not surprising that sentiment towards making either major or household purchases dipped slightly in June, indicating that consumers are feeling wary of taking on more debt or eating into their savings for big ticket purchases.”
