UK job security weakens to lowest since 2023; consumer confidence dips

Consumer confidence in the UK took a step back in August as job security worsened to its weakest level for more than three years, according to new figures.

The closely watched S&P Global UK consumer sentiment index slipped to 42.9 for the month, compared with a previous four-month high of 43.4 in July.

Any reading below 50 indicates that sentiment remains broadly negative.

Maryam Baluch, Economist at S&P Global Market Intelligence, said: "The recent better growth seen in the economy is failing to feed through to households.

"The latest survey shows labour market concerns emerging as a growing drag on consumer confidence."

The latest survey showed that job security data dropped to a reading of 45.6, the lowest since April 2023.

It was the third consecutive month where surveyed Britons highlighted increased concerns over the UK labour market.

Later this week, the Office for National Statistics will unveil the latest official jobs market data, which has highlighted a continued slowdown in vacancies in recent months.

Elsewhere, there was a slight improvement in the household finance index, to 41.2, the highest reading for five months.

Private sector workers particularly highlighted some renewed optimism after a period dented by concerns linked to the conflict in the Middle East and political instability.

Baluch added: "Bucking the overall gloomier trend is the tech sector, which continued to outperform with artificial intelligence-related investment in part supporting both job security and income growth, and adding to signs of a growing boost to the economy from technology-focused sectors.

"More encouragingly, future financial prospects have brightened a little, hinting at a small 'Burnham Bounce', though clearly there remains a long way to go before expectations turn positive."

By Henry Saker-Clark, Press Association Deputy Business Editor

Press Association: Finance

source: PA

Copyright 2026 Alliance News Ltd. All Rights Reserved.

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