British consumer morale slipped this month to its lowest in any time since the Labour government came to power in 1997, according to a survey today.
Research firm GfK NOP's consumer confidence barometer slid to -14 in December from -10 in November, the lowest reading since December 1995 at the end of the last Conservative administration.
Consumers were least inclined to buy big-ticket items since the recession of 1991.
The slide in morale suggests the Bank of England's quarter-point cut in interest rates has done little to soothe worries about the credit crunch.
Prime minister Gordon Brown this week tried to reassure voters the economy would be able to withstand any shocks and that interest rates had room to come down further.
But most analysts expect a sharp slowdown next year, and consumers are likely to lead the downturn as the rising cost of living and falling house prices dampen the urge to spend.