Households concerned about finances while job security improves

People in the UK remain pessimistic about their household finances and the property market but feel that job security is on the up, research from YouGov has found.

Although its overall UK household economic activity tracker deteriorated by two points to 94.3 from the previous month - and remains below the neutral level of 100 - it is still slightly above its long running average of 93.

The majority of households (67 per cent) consider their financial situation to be stable for August, despite a quarter reporting that their finances had in fact deteriorated on the month.

Elsewhere, eight per cent of respondents believe their job security is in a more comfortable position, while 76 per cent reported no change and 16 per cent considered their job to be less secure than in July.

The improvement in people's outlook regarding job security is likely to be a result of a quarter of employees believing work place activity was higher in July than in June.

Dominic White, chief European economist for Absolute Strategy Research (ASR) said although concerns remain over the stagnant property market, there was some optimism.

"The jobs market continues to strengthen, business activity looks to have picked up and consumers suggest they have a few more pounds in their pocket to spend," he said.

More than a quarter surveyed said they have less money to spend than a month ago, however, with this number at 40 per cent in early 2011, the lower level of inflation is likely to be bolstering purchasing power.

Consumers however, are not confident that the improvement will last, with two in five expecting this to get worse again over the next 12 months.

The index's measure of household economic activity has failed to move above 100 since May 2010.