The turmoil in the financial markets has wiped out consumer confidence to levels not seen since the 1990s recession, despite an uplift at the beginning of September.
According to a consumer confidence index published this week by research firm GfK NOP, shoppers’ confidence levels rose for the second consecutive month to -32 in September from -36 in August.
But following the financial upheavals seen in the latter part of September, GfK NOP ran a second survey which showed consumer confidence had fallen back to -36.
Rachael Joy, a consultant, at GfK NOP, said: “Most people are coming to terms with living in a depression.”
Separately, the number of negative trading updates posted by retailers on the London Stock Exchange is at its highest level in more than two years and continues to rise during the third quarter of 2008, according to financial adviser Grant Thornton.