Consumer confidence recovery knocked by job security worries

The number of people worried about job security and their finances has risen despite a continuing rebound in consumer confidence since July's post-EU vote slump.

The monthly YouGov (LSE: YOU.L - news) /Cebr measure, compiled through interviews with 6,000 people, found "a mixed bag" for sentiment - with September's index rising by just one point leaving it two points behind its pre-vote level.

It marked a slowdown since August's strong recovery - the biggest month-on-month jump for three and a half years.

That finding has since been supported by official data which pointed to a rebound for UK output during August following a bout of shock for the economy in July.

Forecasts have since suggested the UK is on course to avoid a recession this year and next - a scenario Remain campaigners had said was unlikely during the referendum campaign under a Leave win.

The Bank of England has claimed much of the credit for this, arguing its decision to cut interest rates to 0.25% and fire further stimulus in August helped stoke loan and spending activity.

While the confidence index for September found that underlying measures of job security and household finances both decreased, people were more pessimistic about business activity and house price growth over the year ahead, the index suggested.

Scott Corfe, director at the Centre for Economics and Business Research (Cebr), said: "Though the economy is showing few - if any - signs of a Brexit-induced slowdown, consumers have not quite regained their pre-referendum confidence.

"It may be that this changes over the coming weeks if economic data remain fairly solid. However, there are fears about the longer-term impact of the vote.

"Although consumers are showing good signs of regaining their confidence in a number of areas over the past couple of months, there are on-going workplace fears for the year ahead.

"While these exist they will act as a handbrake on the post-referendum recovery in consumer confidence."