UK consumers stalked by job fears
UK consumers are getting increasingly worried about losing their jobs, a survey suggests.
A third of 2,000 people surveyed by Lloyds TSB said that they were pessimistic about employment.
Eight out of 10 consumers said they thought interest rates would keep on rising, fuelling consumer concern over future job prospects.
The Bank of England's Monetary Policy Committee voted 5-4 to keep rates on hold in June.
However, most analysts expect the Committee to raise rates over the next few months.
The spectre of unemployment is now beginning to weigh more heavily
Trevor Williams, Lloyds TSB, chief economist
Since last August, UK interest rates have been raised four times in a bid to keep a lid on inflation.
'Fait accompli'
The message is that rates on the rise seems to be getting through to consumers, Lloyds TSB said.
"Consumers have been holding their breath waiting for another interest rate rise and the majority obviously see it as a fait accompli," Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said.
"The combination of interest rate hikes and consumers' correct expectation that prices are on the rise means the spectre of unemployment is now beginning to weigh more heavily," he added.
In response to these pressures, consumers are likely to rein back their spending, which in turn would weaken economic growth, Mr Williams concluded.
Source: bbc.co.uk
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