GfK NOP Consumer Confidence Index dropped four points to -25 in June, as shoppers come down from 'feel-good' May.
GfK reported decreases seen across all five measures of the Index, including personal financial situation, general economic situation and climate for major purchases.
GfK NOP Social Research director Nick Moon said: "It was almost inevitable that there would be a drop confidence in June following last month's unique, feel-good circumstances of public holidays and the royal wedding. What will disappoint the government is that the drop is so large - wiping out half of last month's gain and leaving consumer confidence lower than it was at any point in 2010. Across the board, confidence is lower than it was this time last year. All five measure decreased."
The index measuring changes in personal finances during the past twelve months decreased two points in June to -20, six points lower than this time last year. Meanwhile, the forecast for personal finances over the next twelve months has decreased by five points to -8, which is six points lower than was recorded in June 2010.
An expectation for the general economic situation over the next twelve months saw a three points decline to -18, while the major purchases measure dropped by one point to -27, which is three points lower than June last year.
Mr Moon added: "As we move into the summer, the outlook for the beleaguered high street remains a gloomy one."