The index said that views on the general economic situation were more positive, albeit in deeply negative territory, with a three-point rise in perceptions of the general economic situation over the past 12 months to a score of -69.

Consumers were also more optimistic about the general economic situation for the year ahead, with a seven-point increase providing a score of -61.

The findings are based on a survey of 2,001 UK adults between 3rd and 13th October 2022, with the start date was after the ‘mini-budget’ while the end date was the day before Kwasi Kwarteng was removed as chancellor of the exchequer.

The index found that respondents’ confidence in their own personal financial situation over the last year was flat at -28.

However, there was a six-point increase in the score for personal financial situation for the next 12 months, at -34 overall.

The savings index, which measure whether now is a good time to save, was up two points to a positive score of 13.

Despite this, the major purchase index, which registers whether the current climate is the right one for making a major purchase, was down three points to -41.

Joe Staton, client strategy director at GfK, said: “The biggest danger by far is inflation, now rising at its fastest rate for 40 years.

“Households are not just running scared of burgeoning energy and food prices, and the prospect of further base rate rises increasing mortgage costs. They are now facing the likelihood of tax rises and even austerity measures.

“For ordinary consumers, this web of uncertainty and turmoil amounts to a ‘new abnormal’. The negative environment will deflate future spending plans, and cautious consumers could easily slow the UK economy still further.”