Consumer confidence weakened slightly in July amid concerns from shoppers that they could face potential future tax rises, according to new figures.
GfK’s long-running Consumer Confidence Index dropped one point to remain in firmly negative territory at -19 points.
Researchers suggested the figures showed that consumers are currently “sensing stormy conditions ahead” amid wider uncertainty in the economy.
The drop was shallower than expected by economists, who had predicted a reading of -20 for the month.
The research found that its measure from consumers’ view of the general economic situation for the country over the past year dropped one point to -44.
Expectations for the general economic situation over the next 12 months also decreased by one point for the month.
Meanwhile, the index for consumers’ views on their personal finances remained steady but was still in negative territory.
Nevertheless, there was a rise in the study’s savings measure and people continued to seek to benefit from elevated interest rates.
Neil Bellamy, consumer insights director at GfK, said: “The key measures on personal finances, the economy and purchase intentions are flat in July, and many will conclude that consumers are in a cautious wait-and-see mood.
“But the data suggests that some people may be sensing stormy conditions ahead.
“With speculation growing over possible tax rises in the autumn budget, and price pressure contributing not just to higher inflation already but also to the likelihood of worse inflation to come, the news is worrying.”
It came as figures from the Office for National Statistics (ONS) showed that retail sales bounced back 0.9% last month as record hot weather boosted sales of food and drink.
