Londoners feeling the pinch
The index, measuring consumer confidence in the UK, remained stuck below 100 in September, as a larger number of households reported a deteriorating financial situations than the number who said that things were getting better.
Londoners are feeling the pinch most acutely, especially as the cost of living in the Capital is also steadily increasing.
The survey shows that households are reluctant to increase spending; when asked how they would use a cash windfall, just 13% said they would spend it, while 43% of Londoners would opt to pay off debts instead.
Outside London, households seem less burdened by debt, with more indicating that they would spend or save any extra money.
Dominic White, ASR Chief European Economist said: “The feel-good factor of the Jubilee and London Olympics has worn off.
“Londoners are seeing renewed pressure on wages and job security as the private sector struggles to generate employment growth.
“This has rekindled concerns about outstanding debts and dampened spending plans.”
Growing concerns over job security in the Capital seem to be behind the cautious attitude to spending; 23% of Londoners reported feeling less secure in their job than last month.
The private sector is still struggling – 20% of London respondents expect business to contract over the next year – and this is affecting employees; 11% say they are experiencing wage cuts.