Fears over interest rate rise and jobs send UK consumer confidence to three-year low

Consumers are concerned about the likelihood of an increase in interest rates by the Bank of England, S&P Global said. Photograph: Richard Baker/In Pictures/Getty Images

Fears of a steep rise in mortgage payments and increasing job insecurity have sent UK consumer confidence tumbling to a three-month low, according to a leading survey.

In a blow to John Healey before next month’s budget, the S&P Global consumer sentiment index dropped to 42.7 in September from 42.9 in August, indicating “a notable strain on financial confidence across UK households”.