- Consumer confidence for August overall falls by 0.2 points
- But notably larger fall in confidence over the last week as UK consumers react to global stock market fall
- Three of eight consumer confidence measures decline over the last month
- Employees expect decrease in expected workplace activity over next year
Consumer confidence has fallen slightly in August as employees expect productivity in their workplaces to decrease over the coming year, new analysis from YouGov and the Centre for Economics and Business Research shows.
The new analysis from data firm YouGov and the Centre for Economics and Business Research shows that there has been a slight month-on-month drop off in the Consumer Confidence Index, falling from 114.2 in July to 114.0 in August.
However, looking at August in isolation there has been a sharp drop off in consumer confidence as people in the UK react to the tremors in the global stock market. Earlier in the month consumer confidence hit a year-high figure of 114.8 but in the past week this fell to 112.5.
It comes as there is increasing unease among UK consumers about their jobs and work over the coming 12 months. 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 12 months show the first year-on-year decline in August since YouGov started collecting the data in 2011. YouGov’s data also shows that job security for the coming year has also declined.
The data from YouGov’s Household Economic Activity Tracker for August shows that of the eight measures that comprise the Consumer Confidence Index four have increased, three have declined and one has stayed the same.
Stephen Harmston, Head of YouGov Reports: 'The early weeks of this month saw consumer confidence reach a highpoint for the year. However, the market tremors over the past week have been felt by people in the UK and we have seen a clear drop-off in confidence as a result. 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.'
Scott Corfe, Associate Director at the Centre for Economics and Business Research: '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, with our job security and workplace indicators for the next 12 months pointing to a slightly circumspect year ahead. If the volatility on the markets continues it will heap greater stress on an already fragile business sector and its employees.'
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