UK Households Pessimistic about 2013 Economy

Consumers are braced for another year of austerity after the chancellor’s autumn statement failed to lift the gloom that has descended on the UK economy.

According to a survey this month of attitudes to family finances, 43% of households believe their finances will worsen in 2013, compared with 24% who expect their income to improve.

George Osborne was forced to admit in his autumn statement that growth would be lower than expected, but said he planned to boost investment and the long-term prospects for the economy.

However the survey by Markit, the financial data provider, found that “the underlying situation is that household finances are under severe strain from lower incomes and higher living costs”.

More households were fearful of losing their jobs than in the previous month, and most expected wage rises to remain below inflation, according to the report.

via Guardian

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