Consumer confidence has fallen to a new record low, according to data insights company GfK.

GfK’s long-running Consumer Confidence Index decreased one point to -41 in June.

The company said with prices rising faster than wages, and the prospect of strikes and spiralling inflation were causing a “summer of discontent”.

GfK said the consumer mood is currently worse than in the early stages of the pandemic, the result of the 2016 Brexit referendum, and the 2008 global financial crisis.

The index measuring changes in personal finances over the last 12 months has decreased one point to -23; this is 23 points worse than June 2021.

The forecast for personal finances over the next 12 months has decreased three points to -28; this is 39 points lower than this time last year.

The measure for the general economic situation of the country during the last 12 months is down two points at -65; 18 points lower than in June 2021.

Expectations for the general economic situation over the coming 12 months have dropped by one point to -57; 55 points lower than June 2021.

The Major Purchase Index stayed the same in June at -35; 30 points lower than this month last year.

The Savings Index is down one point this month at +9; 12 points lower than this time last year.

Joe Staton, Client Strategy Director, GfK says: “With a headline score of -41 for June, the GfK Consumer Confidence Barometer has set a record low for the second successive month. The four scores on our personal finances and the wider UK economic picture have all dropped and our measure on major purchase intentions is flat. With prices rising faster than wages, and the prospect of strikes and spiralling inflation causing a summer of discontent, many will be surprised that the index has not dropped further. The consumer mood is currently darker than in the early stages of the Covid pandemic, the result of the 2016 Brexit referendum, and even the shock of the 2008 global financial crisis, and now there’s talk of a looming recession. One thing is for sure, Britain faces a stark new economic reality and history shows that consumers will not hesitate to retrench and tighten their purse strings when the going gets tough.”