Households’ financial outlook in Britain rebounds
Although remaining below the 50.0 threshold to signal continued overall deterioration in household finances, the latest reading was nevertheless the highest in four months.
Moreover, the index measuring expectations for finances in 12 months’ time rebounded in August, having hit a two-and-a-half year low in July following the Brexit vote.
At 49.8, up from 47.1, the latest index reading suggests households anticipate a broadly stable financial outlook over the year ahead.
The highest earners are the most bullish regarding their future financial situation, whereas lower earners are pessimistic. Private sector workers reported a brighter outlook for their finances than those in the public sector. ■