UK household finances remain under pressure
Consumers remain negative about the future of their finances, despite a slight rise in optimism in October, according to a poll.
IHS Markit’s UK Household Finance Index which measures households’ overall perceptions of financial wellbeing – edged up to 44.4 in October, from 43.1 in September.
Anything below 50 indicates households expect their situation to deteriorate.
Joe Hayes, Economist at IHS Markit, which compiles the survey, said:
“Real incomes have been rising for some time now in the UK, while labour market trends have been generally supportive of the UK consumer.
“However, latest survey results from UK households continue to show how economic and political uncertainty is holding back what
could have been a more resilient growth period for the UK economy.
“Negative job security perceptions and a pessimistic financial health outlook have led UK households to delay spending, with major purchases suffering as a result.”