Consumers lose confidence as job worries persist
CONSUMER confidence has dipped for the first time in more than a year, according to an official survey.
The quarterly poll for the British Retail Consortium (BRC) asked consumers how they felt about their job prospects and personal finances.
It showed the confidence index fell two points to 78 in the last three months – the first drop since April 2009.
The survey also revealed that 39 per cent of people said the economy was either their first or second biggest concern. Meanwhile, 71 per cent of respondents said they thought their job prospects over the next year will be “bad” or “not so good”. More than half said the same about their personal finances, according to the data collected by marketing firm Nielsen.
BRC director general Stephen Robertson said: “Pre-election uncertainty has turned into post-election anxiety. Worries about the state of the economy and fears about the direct effect on individuals of austerity measures have halted the revival in customers’ mood that had been underway since this time last year.
“British consumer confidence is below the global average, suggesting we’re more unsure about future recovery than other countries.”
Meanwhile, a separate report by YouGov and Markit showed that Brits had become more worried about their household finances.
The Household Finance Index showed that 27 per cent of people expected their financial situation to deteriorate over the next year. The Future Finances index dropped to 36.9 from 38.8 in June, signalling the highest degree of pessimism since March 2009, when the country was in the grip of recession.
Markit economist Tim Moore said: “Households’ pessimism about their future finances has returned to levels not seen since the economy was in freefall towards the beginning of 2009.
“Job security and pay expectations suffered in July amid concern over the wider economic outlook. The drop in sentiment also reflects a growing sense of unease as widespread public sector cuts come closer to reality.”