The Nationwide Consumer Confidence Index recorded a five point decrease in December to 69 – its biggest fall since November 2008.

While the Present Situation Index remained unchanged on 20 points, the Expectations Index saw a significant drop, decreasing eight points to 101 in December. However, this index still remains high when compared to historical figures following a strong rally in 2009. The Spending Index recorded a one point fall during the month and has remained broadly stable now since September.

Expectations about house prices remained constant in December, with consumers expecting the value of their home to increase by 1% over the next six months.

Martin Gahbauer, Nationwide’s chief economist, said: “The five point fall in confidence in December suggests that an element of caution may have begun to creep back into the minds of consumers over the Christmas period. This comes at the end of a positive year for the index