The Nationwide Consumer Confidence Index for June indicated that the present situation index and expectations index fell in June, with the spending index the only factor to increase between May and June.
get the daily news delivered to your inbox
The Consumer Confidence Index also revealed a drop in house price expectations falling to 2.9 per cent, from the May high of 4.5 per cent.
Nationwide suggested that the index falls were attributed to concerns over future Base Rate rises.
Commenting on the findings, Fionnuala Earley, chief economist at Nationwide Building Society, said: “The fall in confidence in June reflects some weakening sentiment about the economy and jobs, both now and in the future. Higher interest rates are likely to be a major factor behind this as consumers recognise their impact on the wider economy as well as on their own pockets.”
register for the next forum
Elizabeth Smith, mortgage adviser at Money Plus, admitted that further Base Rate rises during the year would further impact on consumer confidence in the mortgage sector.
She explained: “There’s not a lot of concern about value necessarily and not a lot of worry about property prices falling, as I don’t think we’re looking at a problem as the market is more static than it was a year ago. Though after the latest Base Rate rise people may become more concerned about the state of the market.”
