The index, which is published jointly with the Nuremberg Institute for Market Decisions, found every measure in the index dropped in November compared to the previous month, with the chancellor of the exchequer is due to present her Budget to parliament on Wednesday 26^th November.

Perceptions of personal finances over the past year fell two points to -7, while expectations for personal finances over the year ahead also declined two points, albeit with a still positive score of one. Both measures were above the levels seen in November 2024.

The index score for the general economic situation over the past year was at -43, one point lower than the previous month and four lower than the same month last year, while expectations for the economy for the year ahead was down two points to -32, six below November 2024.

The Major Purchase Index, which examines whether now is a good time for a major purchase, fell three points to -15, while the Savings Index, looking at whether now is the right time to save money, dropped five points to a positive score of 24.

Neil Bellamy, consumer insights director at GfK, an NIQ Company, said: “This is a bleak set of results as we head towards next week’s Budget. A fall across all five measures suggests the public is bracing for difficult news, with little in the current climate to lift expectations.

“The three-point drop in the Major Purchase Index is also troubling at this time of year, suggesting households are tightening their grip just as retailers move into a crucial trading period. In such conditions, the Budget offers a timely chance to provide the clarity and reassurance that consumers are struggling to find on their own.”