Optimism about Britain’s economic recovery has melted away at the same time as economists are voicing concern about a Chinese slowdown, an exclusive poll reveals today.
For the first time since spring 2013, more Britons think things are going to get worse than think they will improve in the year ahead.
Today’s Ipsos MORI survey confirms a dramatic increase in pessimism over the summer and autumn which has grown despite good news on jobs and continued low interest rates.
At present, 32 per cent think things will get better and 38 per cent think they will decline, a net economic optimism index of minus six.
In April, the index peaked at a healthy plus 26 — just in time for David Cameron to win the general election. But this slid to +16, +14 and +1 in subsequent surveys. Researchers found women are much more pessimistic, with a negative overall result of -16, compared with +5 for men.
Londoners are markedly more optimistic than people in the north or the Midlands, probably reflecting the capital’s surging fortunes.
Young people, public sector workers, and those in manual and low-paid occupations are also far less optimistic than older people, private sector workers and the better-off, which suggests that spending cuts, benefits reform and possible rises in interest rates are playing on people’s minds.
Gideon Skinner, head of political research at Ipsos MORI, said: “Economic credibility was one of the foundations of the Conservatives’ election success, but while Britons’ sunny mood lasted into the summer, with a generally positive reaction to the budget, it has now turned colder.”
The survey comes as analysts warn about the possible impact of a slowdown in the giant Chinese economy, which has already resulted in cheap steel threatening jobs in the UK.
Commodity-linked currencies such as the Australian and New Zealand dollars fell early today as Chinese stocks slid.
