Households’ confidence in future finances turns more downbeat

In the UK, households' financial expectations have worsened, with the consumer confidence index dropping to 95.2 in September from 97.4 in August. This decline indicates a negative sentiment regarding future finances, particularly concerning job security, as consumers express growing concerns about their labor market prospects. The report from YouGov and the Centre for Economics and Business Research (Cebr) highlights a slowdown in earnings growth and a decrease in job vacancies, contributing to this pessimism. Despite a slight increase in homeowners' confidence regarding property values, the overall outlook for job security has diminished, with the score falling from 118.4 to 115.1. The managing economist at Cebr, Sam Miley, noted that while interest rates are beginning to decrease amid lower inflation, forward-looking confidence in household finances has also declined. The upcoming Budget policy announcements are expected to influence the confidence index in the near future, as they will provide insights into the government's economic strategy. This situation reflects broader economic challenges faced by households in the UK, as they navigate uncertainties in the labor market and financial landscape.