The fall in consumer confidence was unexpected as it came in the aftermath of an interest rate cut from the Bank of England to 5% in August, potentially easing the pressure faced by some households. On Thursday, the Bank pointed to further cuts to borrowing costs, albeit "gradually".

China’s broad budget expenditure shrank at a faster clip amid an unprecedented drop in income earned by local governments from land sales, an alarming sign for an economy desperately in need of fiscal support.

Rachel Reeves will raise taxes by up to £16 billion in the autumn Budget to avoid inflicting austerity cuts on Britain’s public services, economists are predicting. They believe the Chancellor may hike inheritance tax,

Some economists have linked the drop to officials' warnings of a "painful" Budget at the end of August, although it is impossible to prove a link. There were "major corrections" - or double digit falls - for consumers' perception of the general economic situation,