May's surprise rise in consumer confidence has been swiftly undone by a sudden plunge in June, according to new statistics.

The Nationwide Consumer Confidence Index fell for the first time since December in June, reflecting growing concerns about household affordability and interest rates. The index has dropped to 95 - in comparison to 99 in May - as the Present Situation and Expectations indices also slumped.

The Present Situation Index records the way that consumers feel about the current economic and employment situation. A fall from 101 in May to 98 in June is hardly ominous, but it suggests that workers are less secure than they were just a few weeks ago. The Expectations Index, which analyses the way people feel about the economic and employment situation in six months' time, fell to 93 in June, which is well below last year's figure.

Oddly, the Spending Index increased by two points in the month, although it remains clear that customers are not willing to spend as much as they were last year.

Fionnuala Earley, Nationwide's chief economist, said: "The fall in confidence in June reflects some weakening sentiment about the economy and jobs, both now and in the future. Higher interest rates are likely to be a major factor behind this as consumers recognise their impact on the wider economy as well as on their own pockets.

"Spending confidence ticked up very slightly in June but overall it is significantly lower than this time last year. It now seems likely that rates will rise in July with a significant risk of a further increase in the autumn and we expect to see consumers tightening their belts in the months to come."

Rising house prices have been one of the most pressing concerns in recent months, but the new report suggests that homeowners are fairly sure that the trend will not continue. The Monetary Policy Committee has edged interest rates up to 5.5 per cent and respondents to the Nationwide survey were confident that this would curb house price inflation. Over the year, homeowners expect prices to increase by 2.9 per cent, which compares to 4.5 per cent when questioned in May.

New figures from Halifax suggest that this prediction may well be in the right area, with house prices increasing by just 0.4 per cent for the second successive month in June.

Meanwhile, the number of people positive about the future economic situation in the UK fell from 15 per cent to 13 per cent in June, which is indicative of a general sense of trepidation at present.

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