UK consumers more pessimistic as job insecurity persists

(Sharecast News) - UK consumers grew a little more pessimistic about their finances in March as job insecurity persisted, according to a survey released on Monday. The S&P Global UK consumer sentiment index - which tracks financial wellbeing, labour market conditions, household spending, savings and debt - dipped to a 15-month low of 45.3 from 45.4 in February.

This was above the long run average, but weaker than the recent highs recorded in the second half of last year.

Maryam Baluch, economist at S&P Global Market Intelligence, said: "Consumer confidence across UK households remained pessimistic in March. However, underlying data noted some variation in trends. Households experienced less strain on current finances, in part due to looser BoE monetary policy. Moreover, March data revealed a growing appetite for borrowing, with households also finding it easier to secure credit. The recent rate cuts has made household borrowing more attractive and accessible.

"Consumer confidence was again supported by improving labour market sentiment. Income from employment and activity rose further in March. However, job insecurity persisted for a third straight month. With businesses already taking a more cautious approach to hiring following changes to employment policies, households have been impacted. Headwinds to the labour market and a more general slowdown in the UK economy affected households' perceptions on their financial health over the coming months.

"In fact, March data revealed that financial wellbeing over the coming year is set to deteriorate sharply. Sentiment regarding the outlook was the most downbeat in 15 months. Firms also continued to express their concerns around savings and cash availability."

The consumer sentiment index survey is based on a panel of 1,500 UK households. The latest monthly data were collected between 6 and 10 March.