UK consumer confidence plummeted again this month to the lowest level since comparable records began in 1974 - dropping below the level posted when the country was heading into the early 1990s recession - a key survey reveals today.

Private sector research company GfK NOP reports a five-point drop in its overall consumer confidence index to minus-39 - taking it below the March 1990 figure of minus-35.

The increasingly bleak picture of the UK household sector would seem likely to make the Bank of England's Monetary Policy Committee wary about raising base rates from their current level of 5%, although a 35% hike in gas prices announced yesterday by British Gas will add to already-rampant inflationary pressures.

Donna Culverwell, a member of the consumer confidence team at GfK NOP, says: "The index score has dropped again this month and is now at its lowest level since the survey began in 1974. At minus-39, this is 4 points lower than in March 1990 when the UK was heading into the grip of the last recession." She did not consider the weakness of consumer confidence surprising "with the cost of living still on the increase, the housing market in a depression and reports of further increases in energy prices".

And, seeing no light at the end of the tunnel, Culverwell adds: "There seems to be little sign of any relief either. With the growing spectre of the UK going into recession, people are pessimistic and concerned about their future."

The index measuring people's confidence about their personal financial situation dropped by three points to minus-20 - the lowest since April 1995.

Consumers' view of their personal financial outlook over the next year was the bleakest since May 1994.

The index measuring consumers' view of the climate for major purchases fell from minus-35 to minus-37 - the lowest since com- parable records for this measure began in 1982. This appears to spell further trouble for retailers of durable household goods and furniture and carpets - sub-sectors which have been struggling particularly amid the much tougher climate on the high street.

Consumers' view of the general UK economic situation during the last 12 months was at its bleakest since December 1992. Their take on the economic outlook during the next year was the worst since comparable records for this aspect began in 1982.

A separate survey carried out by GfK NOP this month shows 42% of UK con- sumers have changed to buying supermarket own-brands, rather than branded goods, and 28% have switched to a discount supermarket.

Meanwhile, business and consumer confidence plunged in the 15 countries using the euro in July, hitting the lowest level in more than five years, the European Commission said yesterday.

Confidence among consumers and in the construction, industry, retail and services sectors fell to 89.5 in July, the lowest level since March 2003 and the sharpest month-to-month slip since the September 11 terror attacks, according to an EU economic sentiment survey.