British consumer confidence falls

The impact of five interest rate hikes in a year was blamed yesterday for figures showing British consumer confidence at its lowest level since the Iraq war.

Reports of falling house prices and the prospect of another rate hike has also made people more nervous about their financial situation, according to market research group GFK Martin Hamblin.

The monthly consumer confidence barometer stood at minus seven - down from minus five in August - bringing it to its lowest level since March 2003.

Earlier yesterday the Bank of England said that mortgage lending had slowed to its lowest level for a year during August.