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A Nationwide report found that the rising cost of food and fuel, in addition to the weakening property market, are leading to British consumers tightening their belts, reports the Guardian.
Fionnuala Earley, chief economist at Nationwide, said the drop in consumer confidence was expected.
She added: "While consumers appear to be fairly relaxed about the availability of jobs, with unemployment beginning to rise, we are likely to see a change in labour market sentiment over the coming months."
Over half of the 1,000 people surveyed by the building society said they believed economic conditions would worsen over the next six months.
The UK Consumer Confidence Index focuses on consumer’s view of the current and future economic and employment situations, in addition to spending on household and major purchase such as a car or house.
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