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Squeeze on UK household finances intensify in July

Staff Writer |
The squeeze on UK household finances intensified in July, data compiled each month by IHS Markit, using data collected by Ipsos MORI, showed.

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The household finance index dropped to 41.8 in July from 43.7 in June. The score was well below the 50.0 no-change mark and revealed the fastest deterioration in financial wellbeing for exactly three years.

The index measuring expectations for household finances came in at 47.0 in July, up from 45.8 in June.

At 51.0, down from 52.6 in June, the index measuring workplace activity eased to its lowest reading for 12 months.

Further, the gauge for living costs and inflation expectations climbed to 80.7 in July from 79.2 in June.

The proportion of UK households anticipating an increase in the Bank of England base rate during the next six months fell to 27% in July from 34% in June.

"July's survey highlights that the recent moderation in inflationary pressures has yet to provide much relief to UK household finances," Tim Moore, a senior economist at IHS Markit, said.

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