The international research company, Ipsos Global Public Affairs, conducted a survey to determine the sentiment in emerging market countries including China, India, and Russia. They found it to be deteriorating rapidly. Consumer optimism dropped to 31% in November compared with a year ago. The largest drops were in China and India, with China dropping to 46% from 90% 18 months ago, and India dropping to 65% from a previous 88%.

One big factor for the drop in sentiment has been the sharp drop in crude oil prices from $147 per barrel to under $40 per barrel. It had a strong psychological impact on emerging market economies and brought home the notion that they were not immune from the worldwide economic slowdown.

Ipsos also surveyed 22 Western developed countries and found that nearly 75% of people were cutting back on entertainment, vacations, and luxury items.

While consumer confidence has dropped in the US, there has been a theory that in emerging markets people could still show some optimism. At least in many of those countries GDP is still growing meaning employment should move up, or, at least remain stable. Exports, strong for years, should allow for some advancement in the workforce and improving pay scales.

A new survey bursts that bubble and shows that people across the world are cutting spending because fear about income and job security has taken hold in established and emerging markets alike.

According to Reuters, global research firm Ipsos Global Public Affairs conducted a study of consumer confidence in 22 nations. The news service writes that 'While countries like China, India and Russia have helped fuel world growth in recent years, the survey of 22 states in November found consumer optimism in such emerging economic powers in "precipitous decline."' Three-quarters of households across all of these nations are cutting spending.

The news means that the cycle of consumer buying which cause exports from nations like China and imports in the US and EU may be completely disrupted. That in turn will cause income and consumption in emerging countries to fall and do significant damage to their GDP numbers.

Most economists believe that nations including China and India may facing slowing economic activity but that real recessions are out of the question. If consumer activity is a leading indicator. these countries may see their first GDP contractions in years.

Douglas A. McIntyre is an editor at 247wallst.com.