Consumer confidence at 18-year low

Fears of a looming recession sent consumer confidence diving to its lowest level for nearly 18 years this month, a survey has found.

The GfK NOP barometer of UK confidence scored minus 29 in May, down five points from April and the lowest reading since November 1990 - the start of the UK's last UK recession.

GfK's Rachael Joy said: "We are at a massive twenty-seven points lower than this time last year.

"Consumers' confidence in the economy over the next year, plus a reluctance to make major purchases, reflect the popular expectation of a recession - both these measures are at the lowest level on record."

It is the ninth month in a row that the survey's confidence measure has fallen, with consumers battered by soaring petrol prices, household bills and falling house prices.

Ms Joy added: "The future months may see even further falls in confidence, as increasing inflation and dropping house prices make reining in their spending even more likely to the UK consumer."

In one of the gloomiest surveys yet, GfK said all five of its confidence measures had dropped as a result of the economic concerns, with the index relating to personal financial expectations over the next 12 months faring the worst.

The measure dropped to minus four this month, compared to zero in April, falling into negative territory for the first time since December 1996.

Expectations for the general economic situation over the coming year also worsened, falling one point to minus 39, the worst figure on record.

Other downbeat results saw the major purchases index - which measures the appetite for buying big items like fridges and washing machines - fall by eight points to minus 32. This score is also the lowest on record.