Confidence among UK consumers in June was only one point above its lowest recorded level, according to the polling company GfK NOP.
Its UK consumer confidence index came in at -34, which was five points below May's figure and near the -35 recorded in March 1990 during a recession. Rising food, fuel and energy prices were blamed, along with a gloomy outlook for interest rates. The figure was 31 points below the reading for June 2007.
"With rising inflation, gloomy forecasts for interest rates and soaring fuel, utility and food prices dominating the front page headlines, it's no surprise that confidence in the general economy is almost in freefall," said Rachael Joy from GfK NOP, which conducted the research for the European Commission.
"It seems unlikely that this trend will reverse in the near future," she added.
