Now that the bread and circuses that were the London 2012 Olympics are over the true financial position is beginning to surface in the minds of Londoners.
The average Londoner is also expecting things to get worse as time wears on says YouGov.
The latest YouGov UK Household Economic Activity Tracker (HEAT) index remained under 100 in September as a larger number of households said that things were getting worse than said they were getting better.
One of the indicators of these worries for those in the capital was their answer to the question of what they would do with a windfall. Across the country more people would save or pay off debts rather than spend the money (see graph below), but this was more marked in London where 43% of respondents said that they would use the extra money to pay down debt.
The feeling of job insecurity is behind the caution to spend says YouGov with 23% of Londoners saying they felt less secure in their job than they did last month. 20% of them also expect business to contract over the next year and 11% say they are seeing wage cuts.
Commenting on the YouGov HEAT index, ASR Chief European Economist Dominic White said “The feel-good factor of the Jubilee and London Olympics has worn off. Londoners are seeing renewed pressure on wages and job security as the private sector struggles to generate employment growth. This has rekindled concerns about outstanding debts and dampened spending plans.”
And as we all know what happens first in London moves out in time to the rest of the country.