Workers in all industries except for IT and telecoms were feeling less secure about their jobs last month, the S&P Global UK consumer index found.
Britons’ sense of job security has dropped to a three-and-a-half year low, as consumers continue to rein in big purchases amid renewed expectations that borrowing costs will rise, new data shows.
Workers in all industries except for IT and telecoms were feeling less secure about their jobs last month, the latest S&P Global UK consumer index found.
The index showed that the degree of job insecurity was the strongest since February 2023.
Retail workers reported the greatest level of concern in September, the survey showed, amid a widely-reported squeeze on retailers from higher employment costs, weaker consumer spending, and disruptions to their supply chains linked to the Iran war.
The overall score for the consumer sentiment index, which is watched closely by economists, slipped to 42.7 in September from 42.9 in August.
Any reading below 50.0 indicates that sentiment remains broadly negative, and S&P Global said the latest reading indicated notable strain on financial confidence across UK households.
The latest survey, which is based on a panel of 1,500 UK households, showed that people further reined in spending last month as sentiment weakened to a three-month low.
Consumers remained reluctant to commit to spending on more expensive purchases like cars, holidays and household appliances, signalling lower confidence.
During September, households continued to run down their savings at a rapid pace, which was linked to concerns about job insecurity and income and a growing reliance on credit.
Meanwhile, expectations that borrowing costs will increase have become more pervasive among Britons.
Around 53% of respondents to the survey said they now expect the Bank of England to raise rates, compared with 12% that foresee them being lowered.
Last week, the Bank kept rates unchanged but said the case for hiking them was building as energy prices rise on the back of the Iran war.
Maryam Baluch, economist at S&P Global Market Intelligence, said: “September data show a downbeat mood spreading across UK households as improved sentiment surrounding the new government is eroded by renewed worries over energy prices, the cost of living and job prospects.
“Job insecurity rose to its highest level in more than three-and-a-half years, highlighting a growing disconnect between rising economic growth and perceptions of employment security.
“At the same time, expectations that interest rates will begin to rise in the coming months have become more entrenched, adding to concerns about household finances.”
