UK household finance squeeze sharpens in November
This was indicated by the seasonally adjusted Household Finance Index (HFI) falling from 43.8 to 43.4, well below the neutral 50.0 nochange mark.
That said, the latest reading remained above the long-run series average.
Despite the latest deterioration in UK household finance perceptions, spending continued to increase in November, thereby extending the current sequence of growth to 34 months.
The rate of increase softened in the latest survey, perhaps linked to the deterioration in credit availability and falling income.
The future HFI Index fell sharply in November.
At 46.9, the seasonally adjusted figure scored below the neutral 50.0 no-change threshold.
At the regional level, the worst financial confidence was recorded among households in London, where financial expectations towards the next 12 months dropped to the lowest in over five-and-a-half years. ■