UK households most pessimistic about finances in almost six years
UK households are the most pessimistic they have been about their financial outlook for almost six years, with job security perceptions also deteriorating.
Households’ outlook for finances dropped to its weakest level since November 2013, according to IHS Markit’s UK Household Finance Index.
Read more: UK households’ inflation expectations at highest in six years, survey reveals
Overall perceptions of financial wellbeing fell to a four-month low of 43.1 in September, down from 43.6 in August, indicating a higher degree of negativity towards finances.
September also saw sharper declines in appetite for major purchases, which diminished at the fastest rate since December 2013. Perceptions of job security were also the pessimistic for just over two years.
Joe Hayes, an IHS Markit economist, said the drop in financial wellbeing expectations explained “the drop in appetites for major purchases such as cars and holidays”.
“Above all, latest data suggest that the robust performance of the UK labour market may not be sufficient enough to dispel the pessimistic financial outlook, which could ultimately see weaker consumption trends at a time where the economy hinges on domestic resilience.”
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