The Nationwide has reported that consumer confidence fell significantly in May with its ‘confidence index’ falling by 10 points to 65.

Although there was no change to the Spending Index, faith in the present situation and consumers’ expectations for the future diminished during May, Nationwide said.

The Expectations Index underwent the most substantial shift, falling back by 12 points. This index has now fallen by 26 points since February.

There has been a noticeable change in sentiment on the economy during the month and 22% of consumers now feel that the economic situation will be worse in six months’ time than it is today.

Martin Gahbauer, Nationwide’s chief economist, said: “May’s figures reflect an unsettling month for consumers. The General Election and new coalition Government have clearly dominated the headlines