–UK June Household Finance index 35.1 Vs 36.0 in May – Markit
LONDON (MNI) – UK household finances deteriorated in June,
declining to their worst state since March 2009, according to Markit.
The Markit Household Finance Index fell to 35.1 in June from 36.0
in May, its worst outturn for over two years. The June survey found 36%
of households reported their finances deteriorated since the previous
month while just 6% reported an improvement.
Bank of England Governor Mervyn King has highlighted the pressure
on UK consumers at present, talking in last week’s Mansion House speech
about “the squeeze on living standards arising from higher oil and
commodity prices and the measures necessary to reduce our twin
deficits.”
Markit found households are increasingly gloomy about the outlook.
It found some 50% of households expect their finances to worsen,
with just 19% predicting an improvement.
The public is alive to the rise in inflation. In all 83% of survey
respondents reported an increase in their cost of living and a slender
2% reported a fall.
Markit’s cost of living index stood at 90.6 in June, up from May’s
five-month low of 89.3.
The inflation expectations index rose to 94.2 in June from 92.9 in
May, hitting its second-highest level since the survey began.
–London newsroom 0044 207 862 7491; email:drobinson@marketnews.com
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