Consumer confidence fell in June and was 11 points lower than for the same month in 2010, according to figures from the Nationwide Building Society.

The Society’s Consumer Confidence Index had suffered a  four-point fall to 51 since May and was 28 points below its long-run average.

There are signs that the weakness of consumer spending power is beginning to exert downward pressure on prices in the high street, said Mark Saddleton, head of economic and market analysis at Nationwide.

“Consumers are 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,” Mr Saddleton said.

“With this in mind, it is not surprising that sentiment towards making either major or household purchases dipped slightly in June, indicating that consumers are feeling wary of taking on more debt or eating into their savings for big ticket purchases.”