Consumers' finances came under increased pressure in August as workers' pay failed to keep pace with hikes in the cost of living, new research has revealed. Around 30% of people reported a deterioration in their finances during the month, with just 6% saying they improved, according to a survey by Markit and YouGov. The groups said the situation had been caused by a fall in income from employment, combined with a sharp rise in the price of goods and services during the month. The Markit and YouGov survey also found that households were pessimistic about the outlook for their finances in the coming 12 months due to expected tax rises and government spending cuts. Around 47% of households expect their financial position to worsen during the coming year, while only 25% think it will improve. People working in the public sector are more downbeat than those working in the private one, although private sector workers were at their most pessimistic since June last year. One in four people thought job security worsened during August, while households also reported a drop in their income from employment for the third consecutive month. Tim Moore, economist at Markit, said: "Stronger growth in the UK economy has done little to put a floor under the downturn in household finances. Household finances continue to suffer from a backdrop of squeezed disposable income, stubbornly high inflation and ongoing public sector spending cuts."