Consumer confidence in Britain took yet another nose dive as market research from the British Retail Constortium (BRC) dashed hopes that public optimism was beginning to ebb back into the industry.

The BRC reports that consumer confidence has dived a further nine points since last October, in a survey it has conducted in conjunction with market research company Nielsen.

The consumer confidence index for Britain fell from 74 points in October to 65 in the latest poll - the lowest figure since the survey began in 2004. The index stood at 79 this time last year and peaked at 101 in spring 2006.

The fall in confidence has been directly driven by mounting uncertainty about jobs and personal finances in the coming year. Some 86 per cent of people polled said they felt ‘negatively’ about their job prospects over the next 12 months. Some 42 per cent said they felt job prospects were ‘bad’ for the coming year. This is up significantly from 23 per cent last October.

More people felt their own personal finances will be ‘not so good’ (49 per cent) or ‘bad’ (17 per cent) in the coming months while 47 per cent of people said they thought now was ‘not a good time’ to spend on things they want and need.

Most people now understand that the country is in recession, with 98 per cent of people saying this. But only 13 per cent of people think we will come out of recession in the next 12 months.

Stephen Robertson, BRC director general, said: “This survey suggests the economy’s climb back to growth will be harder and slower than the government claims. Only 13 per cent of people believe we will be out of the recession by this time next year. Six months ago nearly one in five thought the recession would be over by this Christmas. Clearly most people don’t share the Chancellor’s optimism.

“The decline in worries about food, utility and fuel prices would be unambiguously good news - if it hadn’t been replaced by concerns about jobs.

“Customers and retailers will go on suffering for a good while yet. It’s business that will get us out of recession and retail is a key driver of growth. That means every time a minister thinks up a new idea that will impose regulations and costs, they must ask themselves - is this extra handicap really necessary now?”

People cited job security as their biggest concern (20 per cent), followed by the economy (19 per cent) and debt (13 per cent). Job security was also the biggest growing concern: when this survey was polled in October 2008, only four per cent of people cited it as their main concern.