According to Growth from Knowledge (GfK)’s long-running Consumer Confidence Index, consumer confidence decreased three points in August as families in the UK continue to struggle with the rising cost of living.

Despite the UK not yet being in a recession, the barometer found that consumer confidence was lower than at any point since the survey began in January 1974.

Confidence been falling consistently throughout this year and plummetted by a further this month. In August 2021, the index stood at -8.

Consumers are pessimistic about the outlook for their own finances in the year ahead (-31) as a further sharp increase in the energy price cap is anticipated in October, but even more pessimistic (-60) about the prospects for the economy.

Joe Staton, client strategy director, GfK, said: “The Overall Index Score dropped three points in August to -44, the lowest since records began in 1974. All measures fell, reflecting acute concerns as the cost-of-living soars. A sense of exasperation about the UK’s economy is the biggest driver of these findings.

“Our sub-measure on the general economy over the past year has decreased month-on-month since December 2021 – that’s eight months in a row. A similar consistent sharp decline since December 2021 is evident in how consumers see the economy a year ahead and this month’s score of -60 sets a new record.”

He added: “These findings point to a sense of capitulation, of financial events moving far beyond the control of ordinary people. With headline after headline revealing record inflation eroding household buying power, the strain on the personal finances of many in the UK is alarming. Just making ends meet has become a nightmare and the crisis of confidence will only worsen with the darkening days of autumn and the colder months of winter.”