Consumer confidence levels are now at -12. Four of the five measures that make up the overall score decreased this month.

According to Joe Staton, head of market dynamics at GfK, it is a sharp drop in confidence about the UK’s general economy – both looking back one year and ahead one year – that is driving the fall. 

The score for ‘personal financial situation over the last 12 months’ fell by one point to -2, while the same score looking forward 12 months rose by two points. Scores for the ‘general economic situation’ over the last 12 months fell by six points to -31, and the same score looking forward 12 months fell by five points to -28. The ‘major purchase index’ fell by two points to -1.

"Yes, employment is booming, but wages have fallen in real terms since 2008 once inflation is taken into account," said Staton.

"And while consumers have increased borrowing to carry on spending, the household savings ratio is now at a record low. If Brexit negotiations continue to deliver more questions than answers, it’s unlikely the Overall Index Score will find any tailwinds for some time.”