Britis consumer confidence is at a record low after big rises in the cost of living and falls in property values, new figures show.
According to a survey by the British Retail Consortium a third of Britons have major concerns about the economy.
The poll of more than 1,000 consumers found 60 per cent thought job prospects were either bad or not as good compared with 50 per cent last year.
More than half (57 per cent) thought their personal finances would be bad or not as good over the coming 12 months compared with 46 per cent six months ago.
On top of this three quarters believe now is not a good time to spend but hang on to their money.
The BRC attributed the fall in confidence to increasing concern about job prospects, personal finances and spending power.
The Nielsen/BRC UK Consumer Confidence index now stands at 79 compared with 91 at the same time last year.
That is the lowest score since the survey began in 2003.
A spokesman for researchers Nielsen, said: "The fact that the score has plummeted a further 12 points shows how much consumers are being stretched.
"Our survey reveals that 55 per cent of people ranked inflation as their main concern during periods of economic downturn while 39 per cent said high interest rates.
"Unfortunately they are being hit with both at present."
BRC director general Stephen Robertson said: "Clothes, footwear, furniture and new technology are the biggest casualties as consumers attempt to manage their money."