Lloyds TSB: Consumers have job security fears

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Lloyds TSB: Consumers have job security fears

Mon 24th Dec 2007

UK consumers are at their most worried about job security for six months, new figures show.

A survey by Lloyds TSB Corporate Markets found that the number of consumers feeling more rather than less insecure was at -4, compared with -1 in November.

Lloyds TSB noted that this figure was compounded by the news that 74 per cent of those surveyed felt prices had risen in the last 12 months, compared with 71 per cent in November, a sentiment which could impact on consumer spending levels.

Trevor Williams, the bank's chief economist, said this may have a negative effect on the economy and housing market, but he hoped the pessimistic view might be short-lived as a result of interest rate cuts.

He commented: "Although our survey suggests that December's interest rate cut has so far had little impact on sentiment, a further two cuts early next year - which we expect - may offer a welcome boost to confidence."

The minutes of the Bank of England monetary policy committee's December meeting indicated that the body discussed cutting the base rate by more than 0.25 per cent, which may indicate another cut will come as soon as January.

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