The number of consumers in Wales concerned about their own job security and wider UK employment prospects has increased according to the latest Lloyds TSB Corporate Markets Consumer Barometer.

The Barometer, which surveys around 2,000 people across 11 regions of the UK, found the number of consumers in Wales in December who believed employment prospects in the UK were better rather than worse than 12 months ago fell by 15 per cent from November to a balance of -39 per cent.

This was a seven-month low for the region and compared to the national average balance of -24 per cent.

Job security in Wales also took a hit this month, with the balance of consumers who felt more secure in their jobs than 12 months ago falling 4 per cent to a balance of -8 per cent. The national average balance fell 3 per cent to -4 per cent.

Despite the fall in confidence over jobs, consumers in Wales were more optimistic about the prospect for lower interest rates in 2008.

Even after December's 0.25 per cent reduction in the base rate, the balance of consumers expecting rates to be higher rather than lower this year dropped to just 19 per cent - a 30 per cent fall and the lowest balance for the region since the survey began.

Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: "The slump in confidence over job security and prospects does not bode well for the New Year. This could dampen consumer spending and have a knock-on negative impact on the housing market.

"However, the fact that official labour market data remains strong offers some hope that job fears may be short-lived.

"Although our survey suggests that December's interest rate cut has so far had little impact on sentiment, and despite the MPC keeping rates at 5.5 per cent in January, a further two cuts over the next few months - which we expect - may offer a welcome boost to confidence."