Consumer morale slides after early summer boom

MORALE on the British high street has slumped back down again, following a brief spike caused by the royal wedding and early summer sun.

In June the Nationwide consumer confidence index fell four points to 51 – a year on year drop of 11 points.

Sentiment had soared from 44 to 55 in the previous month’s index, which included the packed bank holiday period at the end of April.

“Confidence returned to a more subdued level in June as the index again failed to build any sustained momentum to lift it from its current low level,” said Nationwide’s Mark Saddleton. The index now stands 28 points below its long-run average, Saddleton said.

Consumers are gloomy on future prospects for the economy, weighing down sentiment. Fewer than one fifth (19 per cent) of respondents expect the economic situation to be “good” in six months’ time. Thirty per cent said the situation would be “bad”.