More signs that our economy is in trouble.

Fears that America’s credit crisis is spilling over to hit consumer spending were fuelled yesterday after Tiffany, the upmarket jeweller, gave warning that sales over the Christmas period had fallen.

Shares in Tiffany plunged by more than 10 per cent after it admitted that like-for-like sales during November and December had declined by 2 per cent. The group also conceded that the poor sales performance had forced it to reconsider its forecasts for this year’s annual profits.