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On the other hand, reports that the UK is now in a recession, increased unemployment and continued financial market instability have almost certainly had a significant impact on consumer confidence in November.

According to the index, confidence in the current economic and labour markets fell to 30 during the month.

More than three quarters (76 per cent) believe the current economic situation is bad, compared to 75 per cent in October and only 9 per cent believe that the current economic situation is actually good.

The Expectations Index, which portrays people's sentiment towards the future economic situation, fell to 63, perhaps driven by the realisation that a rapid turnaround in the economy and labour market is unlikely.

Nearly half (45 per cent) believe that the economic situation will be worse in six months time, compared to 38 per cent in October and under a quarter (22 per cent) of consumers believe the economy will be better in six months time.

Fionnuala Earley, chief economist at Nationwide, said: "Consumer confidence dropped again this month against the backdrop of an emerging recession in the UK and continued global economic uncertainty."

The index found that consumers are increasingly gloomy about employment. Nearly half (49 per cent) of consumers think there are few jobs available now, up from 41 per cent last month, and over half (59 per cent) think there will be few jobs available in six months, up from 56 per cent in October.

Despite this, however, the majority of consumers think they will be unaffected, with nearly two thirds (65 per cent) believing their household income will remain the same in six months time.

Earley added: "Reports of job cuts have almost certainly impacted on sentiment about the present and future employment situation, causing purse strings to tighten further, even as the festive season gets underway.

"It remains to be seen whether the chancellor's recent announcement will greatly improve consumer confidence."