More than half of people do not expect financial position to worsen

More than half of those surveyed expect their financial position to worsen over the next year.

That is compared to 40% who had negative expectations in the first quarter and 26% in the final quarter of 2021.

In the month our survey was conducted, Danske Bank chief economist Conor Lambe said that the rate of inflation in the UK hit a multi-decade high of 9.4%.

Consumer confidence fell because of this high inflation, and it's likely that consumer price inflation will go up even higher in the future. 49% of respondents said they expected to spend less on expensive items over the next year, compared to 38% in the first quarter.

When asked about job security, 60% expected no change in job security and only 9% thought their job security would worsen, largely unchanged since the last survey.

The most recent official figures for the job market indicate that companies were still recruiting in June.

Pay rises in Northern Ireland were not keeping up with the rate of inflation, which is 9.4%, according to the official data.

The Resolution Foundation think tank thinks that inflation could peak at 15% in the first quarter of next year.