UK Households Feeling the Squeeze

British households’ financial situation has deteriorated at the fastest rate in three years this month, as families increasingly shy away from big purchases like cars, holidays and household appliances, a survey showed on Monday.

Financial data company IHS Markit said its monthly Household Finance Index dropped to 41.8 from June’s 43.7, its lowest since July 2014, reflecting an ongoing squeeze on household incomes as inflation rises faster than wages.

“There are signs that squeezed household budgets and worries about earnings have started to spill over to consumer spending patterns,” said Tim Moore, a senior economist at IHS Markit.

Reuters

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam