Consumer confidence dips in August as people worry about markets chaos and rising unemployment
- Consumer confidence overall fell slightly by 0.2 points to 114
- The last week of the month saw a big slump in confidence, YouGov said
Consumer confidence fell last month as people worried about the chaos on financial markets and rising unemployment, according to a new survey.
While the early weeks of August actually saw consumer confidence reach a highpoint for the year, the last week of the month saw a big slump as people reacted to the global stock market turmoil.
Consumer confidence for August overall fell slightly by 0.2 points to 114 from 114.2 in July, with the last week of this month recording a ‘notably larger’ fall, the latest Consumer Confidence index by YouGov and Cebr has showed.
Rainy days: Workers are worried about their job security over the coming year
However in direct contrast - and proof that sentiment surveys should be taken with a pinch of salt - market research company GfK British said consumer morale rose in August.
It said low inflation and a recent pick-up in wages made Britons more upbeat about their financial prospects. Its monthly sentiment index jumped to +7 in August from +4 in July, matching June's figure, which was the highest since January 2000.
Yet according to YouGov and Cebr, Britons seemed to be more worried about their job security over the next twelve months, perhaps following recent labour market data that showed unemployment rising again in June and total pay growth slowing down.
The jobless total went up by 25,000 in the quarter to June, the first time there has been two consecutive rises for two years, according to the latest ONS data.
Total pay growth slowed to 2.4 per cent in the year to June - down 0.8 percentage points compared to the previous month's 3.2 per cent.
Scott Corfe, associate director at the Centre for Economics and Business Research, said: ‘The recovery is far from secure as the recent unexpected rise in unemployment and this week’s chaos in the financial markets demonstrate.
‘It is clear that many businesses and workers are still quite apprehensive about the future’.
He added: ‘If the volatility on the markets continues it will heap greater stress on an already fragile business sector and its employees.’
While more people still expect their workplaces to be busier next year than think they will be quieter, the figures for expected levels of business activity over the coming twelve months show the first year-on-year decline in August since YouGov started collecting the data in 2011.
Workers also expect productivity in their workplaces to decrease over the coming year.
Nevertheless, people are still upbeat about their household financial situation, according to the survey.
Stephen Harmston, head of YouGov Reports, said: ‘It is becoming apparent that while people feel their living standards are slowly starting to pick up some are becoming a bit more pensive about their livelihoods.
‘The fact that they foresee productivity levels falling over the coming 12 months indicates that for many workers and business the recovery is still quite brittle – and the events of the last week will only confirm this to them.’
While Britain’s economy continues to grow, though not in a balanced way, it is exposed to the concerns over a global downturn, worsened by a slowdown in China, which has sent stock markets plunging in recent days.
Most watched Money videos
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- MG unveils new MG3 - Britain's cheapest full-hybrid car
- German car giant BMW has released the X2 and it has gone electric!
- Mini unveil an electrified version of their popular Countryman
- Steve McQueen featured driving famous stunt car in 'The Hunter'
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- How to invest for income and growth: SAINTS' James Dow
- How to invest to beat tax raids and make more of your money
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Iconic Dodge Charger goes electric as company unveils its Daytona
- BHP launches £31bn bid for Anglo American: Audacious...
- MARKET REPORT: Meta sheds £130bn value after AI spending...
- PWC partners choose another man to become their next leader
- Sitting ducks: Host of British firms are in the firing...
- BUSINESS LIVE: Anglo American snubs BHP bid; NatWest...
- Unilever sales jump as consumer giant eases price hikes
- WPP revenues shrink as technology firms cut advertising...
- Unilever in talks with the Government about ice-cream...
- Anglo American snubs 'opportunistic' £31bn BHP bid
- WH Smith shares 'more for patient money than fast bucks',...
- LSE boss David Schwimmer in line for £13m pay deal...
- AstraZeneca lifted by blockbuster oncology drug sales
- Ten stocks to invest in NOW to profit from Rishi's...
- Sainsbury's takes a bite out of rivals: We're pinching...
- Anglo-American will not vanish without a fight, says ALEX...
- Sainsbury's enjoys food sales boost months after...
- Barclays profits hit by subdued mortgage lending and...
- BHP swoops on rival Anglo American in £31bn mining megadeal