The index showed that all measures were down on December’s scores, with the biggest falls coming in people’s perceptions of the general economic situation in the UK.

The measure for the general economic situation of the country during the last 12 months was down seven points to -46, according to the index, which was five points lower than in January 2024.

Expectations for the general economic situation over the next year have dropped eight points to -34, which is 13 points worse than January 2024.

The index measuring changes in personal finances during the last year was down three points at -10, albeit still two points better than in the same month last year.

The forecast for personal finances over the next 12 months was also down three points at -2, which was two points lower than this time last year.

The Major Purchase Index, which measures whether now is the right time to make a major purchase, was down four points to -20, and at the same score as January 2024.

However, the Savings Index rose nine points to a positive score of 30, also three points higher than this time last year.

The survey took place between 2^nd and 16^th January with a sample of 2,007 UK adults.

Neil Bellamy, consumer insights director at NIQ GfK, said: “New Year is traditionally a time for change, but looking at these figures, consumers don’t think things are changing for the better.

“These figures underline that consumers are losing confidence in the UK’s economic prospects.”

He added: “While the Savings Index on motivation to save money is not included in the calculation of the overall index score, it’s notable that it has leapt nine points in January to +30.

“This sharp increase is unwelcome, because it’s another sign that people see dark days ahead and are therefore thinking of putting money aside for safety.”