Consumer confidence fell in June as high inflation and unemployment combined with low wage growth to weigh on households' spending power, a survey has revealed.
The fall in confidence was driven by declining future expectations, which made people less willing to splash out on big-ticket items or household goods, according to Nationwide Building Society.
Its index for confidence fell four points to 51 between May and June, which is 28 points below its long-run average and 11 points below the same period a year ago.
The index had risen 11 points between April and May after being boosted by the royal wedding, a run of bank holidays and warm weather, but fell back in June when consumers had less to cheer.
Mark Saddleton, head of economic and market analysis at Nationwide, said: "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.
"Consumers are still facing challenging conditions with high inflation, fuel prices and unemployment weighing down on household budgets and sentiment.
"Combined with weak wage growth, spending power continues to be eroded and placed under significant pressure, making it difficult for consumers to drive the recovery forward."
A significant change in confidence is unlikely while the recovery struggles to develop momentum, he added.
Future expectations fell seven points to 70 on the index, well below its long-run average of 88, as more people thought the economy and labour market will deteriorate over the next six months.
The measure of consumer spending power fell six points to 74 as fewer people thought now was a good time to make major purchases.