News Column

Household finances still being squeezed with no end in sight

August 21, 2014

MICHAEL BIRD



BRITISH households saw no end in sight to the UK's earnings squeeze this month, despite a significantly improved outlook for employment.


According to data firm Markit's latest household finance index, released yesterday, families' cash availability had declined at the most rapid pace in half a year during the current month.


The headline index, which measures the reported change in household finances, sat at 42.2, a minor improvement from July. Although the figure has risen from below 40 at the end of last year, households are broadly negative, far below the neutral 50 level.


The deterioration in finances comes despite the increasing perception of job security. Resp-ondents were less pessimistic about their likelihood of holding down employment since at least 2009, when the survey began.


"Subdued inflationary pressures and improving economic conditions are supporting financial wellbeing this summer, but hopes of a boost to pay rates have so far failed to materialise," said Markit senior economist Tim Moore.


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Source: City A.M. (UK)


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