Consumer mood worst since 1992

Consumer confidence in April plummeted to its lowest level since the economic slump of 1992, a survey showed on Wednesday that will make grim reading for Prime Minister Gordon Brown on the eve of local elections.

The GfK/NOP consumer confidence index fell to -24 from -19 in March as people turned gloomier on the state of the economy and their own personal finances.

That was the lowest reading since November 1992 just months after sterling was thrown out of the European Exchange Rate Mechanism and the then-Conservative government lost its reputation for sound economic management.

That bodes ill for Brown's Labour Party which is already expected to take a hammering in local elections on Thursday, its popularity massively dented after 11 years in office and as the economy slows because of a global credit crunch.

The index measuring people's assessment of the economic situation over the next 12 months fell to -38 from -32, the lowest since October 1992.

The figures may also boost expectations of further interest rate cuts - the central bank has cut borrowing costs three time since December - but policymakers are also worried about inflation and may want to see more concrete signs of a slowdown.

In a sign that negative headlines may be partly responsible for souring the public mood as much as any actual change in circumstances, the index for personal wellbeing was much higher, standing at 0, down from +4 in March.

Still, that was the lowest since December 1996 and people were also more reluctant to make major purchases since November 1990.