Confidence among US consumers fell last week following the collapse of Lehman Brothers, the sale of Merrill Lynch and the takeover of AIG.

According to a daily poll by Gallup Management Journal, 86 per cent of consumers questioned on September 20th said they thought economic conditions were worsening.

This compares to September 14th when 77 per cent of consumers said they believed this to be the case, suggesting the recent financial crises have had an impact on how consumers feel about the country's economic prospects.

Explaining the change in sentiment, Gallup chief economist Dennis Jacobe said: "A lot of people trusted that these big Wall Street investment firms couldn't go broke. As trust erodes, it creates problems."

Consumers across the US are also facing large debt problems, with many falling behind on mortgage repayments or even experiencing foreclosure.

A recent analysis of census data commissioned by USA Today revealed that 75 per cent of homeowners with annual incomes under $50,000 are having problems repaying mortgage debt.

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