Consumer confidence has slumped to an all-time low, with almost two-thirds of consumers believing that the country is in recession, according to a survey by the British Retail Consortium (BRC).

The study showed the confidence index had dropped to 79, compared with 91 this time last year and was now at the lowest level since the survey began in 2003.

One in five people said they have no spare cash to spend, and people are worried more than ever about their job security and finances amid soaring bills and house prices tumbling.

The biggest worry was the economic outlook, with nearly one in five people saying that it was their main concern, the BRC said.

Debt came a close second, with one in six people saying that it was their primary worry.
Over a third of people (34 per cent) predict a global recession in the next 12 months.

BRC’s Stephen Robertson says: “With one in five people saying they have no spare cash, the highest ever recorded by this survey, customers are telling us they are cutting back on spending on all sorts of non-essentials.

“Clothes, footwear, furniture and new technology are the biggest casualties as consumers attempt to manage their money.”

Chiltern’s Nathan Gladwell says: “This report shows that shopper’s need to manage their finances more closely in the current economic situation and their confidence is at an all time low.

“With rising costs on most goods, and confidence falling in the housing market, people need to budget to ensure they have enough money each month for their essential items.

“An informal arrangement with Chiltern is useful for people struggling with their finances as it prioritises debts, ensuring mortgages and utility bills are paid first. This also enables unsecured debts – like loans and credit cards – to be paid off at a more affordable level.”