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.
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