UK household finances remain squeezed by inflation
IHS Markit's Household Finance Index nudged down to 42.4 in May from 42.5 the month before, remaining well below the post-crisis peak of January 2015, as households reported one of the fastest rises in living costs since early 2014.
This meant cash available to spend fell to its lowest level in two-and-half years in May.
In addition, survey respondents indicated that their need for extra unsecured borrowing continued to rebound from the lows seen last year.
The survey also found that UK households remain downbeat about their financial prospects, with the seasonally-adjusted index measuring expectations for finances in 12 months' time down to 47.3 in May from 47.8.
The index has been below the neutral 50.0 mark since April last year. ■