Consumer confidence has dropped over the last month with more people saving as a result of the increase in interest rates.
The GfK Consumer Confidence Index has dropped three points to -6 in July, a reflection of the three interest rates to have hit shoppers.
Instead, consumers saw last month as an opportunity to save and according to GfK, is at its highest level since January 1989.
Rachael Joy, at GfK NOP, said: “This month consumers are more downcast than we have seen in the last couple of months. Consumers believe that now is a good time to save with the ‘savings index’ at its highest level since the end of the ‘80’s, a likely result of the third interest rate increase this year.”
