UK high street
While sales brought out the crowds, overall consumer confidence dipped by 1% in June Reuters

Consumer confidence dropped for the first time in 2014 as the economic recovery begins to cool.

A consumer confidence report by Lloyds Bank shows that the overall index was relieved by one percentage point to 145 in June, despite the number of people in employment rising to a record 30.6 million in the previous month.

Spending on electricity and gas fell by 2.5% in comparison with June 2013 and cost of fuel was 5.5% lower.

Spending growth on necessities grew by roughly 1%, said the Spending Power report from Lloyds Bank.

Patrick Foley, chief economist at Lloyds Bank, said: "Notwithstanding a modest easing in confidence, the economic backdrop for consumers remains positive, particularly so in light of continued gains in employment."

Further signs that the economic recovery is showing early signs of lagging comes from the British Retail Consortium (BRC), which says that total retail spending also fell in June to the lowest rate since May 2011 as 0.7% fewer people took to the shops.

"At first glance, this month's figures don't paint a rosy picture for the retail industry with the headline figure showing footfall shrinking once again," said Helen Dickinson, BRC director general.

"Retailers have seen good sales growth in their online clothing and footwear and many are reporting positive results led by their online summer sales.

"The popularity of click-and-collect has helped support footfall in retail parks, offering further evidence of the changing shape of how we shop and the increasing complexity of the relationship between digital and physical."

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