UK consumer confidence weakens as job worries mount
By Benjamin Chiou
Date: Monday 17 Aug 2026
(Sharecast News) - UK consumer confidence weakened in August as concerns over job security intensified and household incomes fell for the first time in more than three years, according to the latest S&P Global survey.
The UK Consumer Sentiment Index slipped to 42.9 from 43.4 in July, with the average reading so far in 2026 pointing to the weakest consumer sentiment since 2023.
Labour market sentiment fell to its lowest level in 41 months, as households became increasingly worried about their jobs. Job insecurity rose to its highest in nearly three-and-a-half years, while employment income declined for the first time in 40 months, ending the longest uninterrupted run of income growth since the survey began in 2009.
Spending sentiment remained the biggest drag on confidence, while households continued to run down savings at a rapid pace. Demand for additional borrowing also picked up, even as access to credit became more difficult.
However, expectations for future finances improved, with the household finance index rising to a five-month high.
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."
Households also became more hawkish on interest rates, with the net balance expecting higher rates rising to 29% from 23% in July.
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