British confidence declined in July despite pleasant weather, with wariness mounting ahead of potential tax increases in the government's autumn Budget.
Sentiment dropped by one point to -19 in July, according to GfK's Consumer Confidence Index, as reported by .
The measure for the general economic situation of the country during the past 12 months decreased one point to -44; 12 points worse than in July 2024.
Projections for the general economic situation over the coming 12 months declined one point to -29, leaving confidence 18 points lower than in July 2024.
Neil Bellamy, consumer insights director at GfK, an NIQ Company, described the data as "worrying."
"The data suggests that some people may be sensing stormy conditions ahead," he added.
Bellamy attributed the fall in confidence to "speculation growing over possible tax rises in the autumn Budget" as well as "price pressure", which is contributing to current and future inflation.
The Bank of England has been urged to hold interest rates in August to help battle rising inflation.
Meanwhile, lower-than-expected economic growth and multiple government U-turns has opened up a hole in the government finances, which is likely to be plugged by a combination of freezing income tax bands and limits on cash ISAs.
The British Retail Consortium's sentiment index also dropped in July, with Brits' confidence in the state of the economy taking a particular dive. "Rising inflation, particularly for food, has put more pressure on personal finances, increasing the cost of living," stated Helen Dickinson, chief executive of the British Retail Consortium.
"With the º£½ÇÊÓƵ economy shrinking for the second consecutive month, it is little surprise that consumer confidence fell in July," she further added.
