Consumer confidence has fallen to its lowest level this year.

The monthly report, by research firm Martin Hamblin GfK, said its consumer confidence index slid by three points in October to stand at plus one, the lowest since December 2001.

On its index a figure above zero indicates confidence.

The most marked decrease in confidence was seen in how people viewed the general economic situation during the past year. Perceptions of the economy are now at their lowest level since September 2000.

In addition, people's perceptions of their personal finances during the past year also fell, down three points to plus three, while expectations about their savings were down two points at plus 13.

Confidence about making a major purchase has also dropped.

Some 25 per cent said they were likely to buy a car in the next two years, against 27 per cent in July, while the number saying they were likely to spend a large amount on home improvements slipped to 26 per cent from 27 per cent.

However the number of people expecting to buy a house stayed steady at 15 per cent.

John Butler, economist at HSBC, said although the index measured the weakest this year, the survey still pointed to robust consumer confidence.

He added: "The drop in confidence was mainly due to a more pessimistic view about the general economic situation.

"While consumers were slightly more concerned about their own financial situation than a month ago, they are still about as comfortable with their debt as any time in the past 12 years.

"This is illustrated by a new record low in the number of consumers intending to save over the next 12 months."

Ross Walker, economist at Royal Bank of Scotland, said: "With the global recovery looking more precarious and April's tax hikes kicking-in shortly, consumer confidence has now past its peak.

"Optimism about financial prospects remains close to record levels and should prevent any sharp deceleration in spending."