Consumer morale slips in latest sign of end to post-Brexit vote boom

UK consumer confidence dipped in February amid fears over rising inflation as the strong spending that has fuelled the economy since the Brexit vote looked set to run out of steam, new figures show.

GfK (Swiss: GFK.SW - news) 's consumer confidence barometer, conducted on behalf of the European Commission, dipped by one point to -6.

It also showed that for a second month running, shoppers became less keen on major purchases.

The report added to signs that consumer spending - the driving force behind the UK economy over the last few years - is starting to weaken as price pressures mount.

Prices are heading higher partly because of the sharp fall in the pound since the Brexit vote, which makes goods priced in foreign currencies more expensive.

Joe Staton, head of market dynamics at GfK, said the fall in confidence came amid a "burgeoning fear of rapid inflation" weighing on people's feeling about their personal financial situations.

"Any momentum behind the post-Brexit, debt-fuelled, consumer-spending boom now appears to be softening," he added.

"Consumer spending continues to drive economic growth in the UK so any further fall in confidence should support forecasts for a slowdown of the overall economy this year."

The report follows recent official figures showing declining retail sales - though on Monday the owner of fashion chain Primark said it was yet to see signs of a slowdown.

GfK's data came from a survey of 2,000 people.

Another survey on Tuesday, from YouGov (LSE: YOU.L - news) and the Centre for Economics and Business Research (Cebr) painted a similar picture, showing consumer confidence slipping in January.

It pointed to weaker perceptions of job security as well as a deteriorating outlook for household finances.