The latest figures follows a list of disappointing surveys and official economic data which indicates a slowdown and even a mild recession.

The continued slump in house prices, increasing food and energy bills as well as further job losses saw Nationwide's consumer confidence index fall for the seventh consecutive month.

Of those polled in the Nationwide survey 61 percent indicated that the current climate is bad and 85 that it will be as bad or worse in six months which means that the index is likely to continue to break record lows.

Fionnuala Earley, Nationwide's chief economist said that with falling oil prices and lower fixed mortgage rates is seems as though there is a brighter outlook for consumers, although a further cut in interest rates is unlikely as a result of strong inflation.