CONSUMER confidence has fallen to a new low as people worry about the state of the economy and job prospects, research showed today.

Nationwide Building Society said its consumer confidence index had fallen for the third consecutive month during October to 92 - its lowest level since the group launched it in May last year.

People's confidence has now fallen by 16 per cent since April this year as a period of bad news, including the London terrorist attacks, low house price growth and high petrol prices, has taken its toll.

During October, confidence in the economy and the number of jobs available fell by five points to a new low of 93, although consumers' confidence in these areas remained unchanged, suggesting their sentiments may improve in the coming months.

At the same time, the group's spending index, which measures shoppers 'intentions to make major purchases', rose by three points, suggesting retail sales figures for October could be more positive than in recent months.

People were also feeling more optimistic about the housing market, with 41 per cent expecting prices to rise in coming months.

the coming six months, the highest proportion since August last year when annual house price growth stood at 18.9%.

Stuart Bernau, Nationwide's executive director, said: "After three consecutive months of falls, consumers continue to be gloomy. The main index reached another new low in October, with consumers' confidence in current conditions particularly badly hit.

"The index peaked in the spring, but since April a series of bad news stories appear to have hit confidence.

"However, recent positive news about both the number of housing transactions and house price inflation, as well as retail sales, all give indications that better times may lie ahead."

TNS questioned 1,000 people between September 21 and October 20.