Proactive Investors - Gloomy comments about what might be in the forthcoming Budget have taken a toll on consumer confidence according to the latest data from market researcher GfK.
Its measure of consumer confidence fell by seven points to minus 20 in August, it fell by seven points.
Economists suggested that the new government’s repeated warnings about what lies ahead had had an impact with a significant drop in the outlook for the economy.
Respondents' view of their finances going forward, meanwhile, fell nine points to minus 3.
Economists had expected this to turn up as interest rates and mortgage levels have fallen with inflation stable, but the withdrawal of winter fuel allowances and expectations of tax hikes have outweighed this, GfK suggested.
"Despite stable inflation and the prospect of further cuts in the base interest rate, this is not encouraging news for the UK’s new government," said Neil Bellamy, consumer insights director at GfK.