Recent Bank of England interest rate rises are eroding consumer confidence.

According to research carried out for the European Commission by pollster Martin Hamblin GfK, cautious Britons are saving rather than spending. That's good news for the banks but not for high street retailers.

Last month's survey of more than 2000 adults showed an overall two point drop in the 'confidence headline index' to minus 4, the lowest this year.

And when consumers were asked if it is a good time to make major purchases, the index dropped eight points to +5, the lowest since last December. By comparison the perception of whether it is a good time to save rose six points to +21.

But the consensus view among consumers was that the national economy is stable.

Data sourced from: Daily Research News Online; additional content by WARC staff