Lack of job security furthers consumer confidence slump

Worries amongst British workers about their job security have reached a 12 month high.

A report from Lloyds TSB Financial Markets discovered that only 14 per cent of workers believe that the UK employment outlook is better than a year ago, with 24 per cent saying that their job is less secure than a year ago.

It also discovered that the majority of British consumers believe that interest rates will rise by this time next year. Only 14 per cent believe the contrary, despite the August rate cut and the strengthening property market.

Trevor Williams at Lloyds TSB said that growing claims for unemployment benefit had indicated “worsening labour market conditions”, whilst poor retail sales and worries about inflation have dented consumer confidence.

He added: “Consumers’ inflation expectations remain above the average for the life of the survey; this is illustrated by the majority of consumers believing prices are rising quickly and will continue to do so.”

Mr Williams warned that continued consumer pessimism could make the Bank of England’s job “of hitting the inflation target” far more difficult in the coming months.

© Adfero Ltd

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