Recession never ended, according to consumers

Increasing gas and electricity bills were the biggest or second biggest concern for 32 per cent of respondents who took part in the poll for Neilson and the British Retail Consortium.

Coming a close second were fears over the economy as a whole – a worry for 28 per cent – and job security, which was a concern for 22 per cent of people.

Fears over each of these has intensified since the second quarter of the year.

A total of 86 per cent of consumers believe the country is still in recession and jobs fears have increased, according to the poll.

The overall Consumer Confidence Index was up one point in the three months to September, compared with the previous quarter, at 73.

Any number below 100 marks a pessimistic outlook, while above 100 is a positive, optimistic view of the future.

The figure for the third quarter is lower than at any point last year, and echoes the negative outlook seen during the 2008-9 recession.

With unemployment reaching a 17-year high, the proportion of consumers who believe job prospects for Britain will be negative over the next year worsened three percentage points to 76 per cent.

Utility bills have increased by between 15 per cent and 20 per cent since all of the Big Six energy providers raised their prices over the summer.

The cost of petrol has also soared in recent months.

British Retail Consortium director-general Stephen Robertson said: “There’s not much to be cheerful about here.

“Consumer confidence has barely improved on the previous quarter and is still lower than at any time last year. Even though this week’s figures show the economy growing by 0.5 per cent, 86 per cent of people believe we are still in recession and only 11 per cent think that will change in the next 12 months.”

He added: “Utility bills are people’s biggest concern, with over half trying to save on gas and electric bills, confirming that rising costs and low wage rises are putting disposable incomes under huge pressure. With jobs fears mounting and no relief in sight this year, retailers are braced for a difficult Christmas.”

Chris Morley, Nielsen’s managing director for UK & Ireland, said: “Consumer confidence stabilised in quarter three, but the high cost of petrol and energy bills continues to put pressure on already squeezed shopper budgets.

“Shoppers are remaining cautious and managing what they spend more closely, and this is leading some supermarkets to experience volume declines.”

But Mr Morley said that not all consumers were feeling the squeeze equally.

“One in four respondents reports having to cope with having no spare cash, which suggests the downturn is impacting some people more than others,” he said.

“Overall, most shoppers remain fickle and are shifting spend towards retailers that offer the most immediate savings.

“But shoppers want more value – other than just cheap prices – so retailers trading purely on low price will only attract the most disloyal shoppers.”

The global consumer confidence index fell one point to 88, but European nations in general remained among the most pessimistic, with an average of 74.