Consumers are nervously awaiting the budget, reports data provider GfK, while national debt hits highest level since 1960s.   15:28 A day after stocks hit record highs, the mood on Wall Street is a little more subdued today.

Consumer confidence has plunged as concerns grow that Labour’s rhetoric is dampening economic optimism. With fears of tax rises and a painful Budget, households and businesses are holding back on spending and investment.

A long-running measure of consumer confidence has shown a significant drop in September, after warnings by the new government about the state of the public finances and a “painful” Autumn Budget to come.

GfK's Consumer Confidence Index fell seven points in September to minus 20, with significant drops in predictions for personal finances and the general economy over the coming year

The last time the index declined so steeply was in April 2022, in the wake of Russia's invasion of Ukraine which sent energy costs soaring.

Consumer confidence falls sharply as households ‘nervously’ await Budget - GfK’s Consumer Confidence Index fell seven points to minus 20, with significant drops in predictions for personal finances and the general economy.