Figures unveiled this morning show that its Consumer Confidence Index fell from August's 100 points to 94 points for September. The figure is the lowest recorded since the survey began last year.
The report also noted that the economy is growing at its slowest rate for 12 years, which is contributing to a weakening of consumer sentiment. Nationwide group economist Fionnuala Earley said: 'While most people continue to have a positive view of the economy, this is waning as mixed pictures continue to emerge. On the one hand, continued weakness in retail sales, while on the other a boost in the housing market.
'In September, all four indicators in the Nationwide Consumer Confidence Index fell quite sharply, but the three-month trend shows a flatter profile.'
The Expectations Index, which measures what consumers think will happen to the economy, the number of jobs available and their own future income, fell from 101 points to 91 points.
The number of people expecting the economy to be worse in six months rose to 31 per cent from 25 per cent in August, while confidence in the number of jobs likely to be available in future fell marginally.
Nationwide's survey asked the opinions of 1,000 people.