Consumer confidence fell back again in January, following a rise in December, according to the Nationwide.

The latest fall almost reversed the small gain seen at the end of 2010 and leaves the Index just six points above its all time low. The Expectations and Spending indices were the key drivers, with the latter recording the largest monthly fall on record. At 70 points this measure is now at its lowest level since November 2008. Confidence in the present situation remained subdued in January, although this is nothing new – the Index has hovered around 30 for over two years now.

Consumers expect the housing market to remain sluggish over the coming months. They expect the value of their homes to decrease by 1.1% over the next six months, similar to the decrease of 0.9% they expected in December.

Robert Gardner, Nationwide’s chief economist, said: “Household confidence remained in the doldrums in January