UK Household Finances Remain Under Pressure

UK households’ perception of financial wellbeing remained negative in October but the assessment improved from September, data from IHS Markit showed Monday.

The household finance index rose to 44.4 from 43.1 in the previous month. This was the highest score since January.

Looking ahead, a downbeat outlook for financial health over the coming 12 months was signaled.

UK households suggested strong growth in workplace activity in October. However, job security perceptions remained negative and appetite for major purchases also remained in decline.

Living cost perceptions remained firmly inside inflation territory but they strongly anticipate living costs to increase over the coming year.

One-in-four UK households expect Bank of England will cut interest rates.

“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,” Joe Hayes, an economist at IHS Markit, said.

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