Household finances are on the slide, as high inflation and unfavourable job market conditions continue to bite.

Home finances at 20-month low

Household finances are on the slide, as high inflation and unfavourable job market conditions continue to bite.

Home finances at 20-month low

Markit’s Household Finance Index – a survey of 1,500 individuals in Great Britain that compares households’ finances monthly – dropped to a 20-month low in January.

Around 34% of households reported a deterioration in their current finances, compared to just 6% that saw an improvement.

This month’s survey also reveals a sharp rise in the number of households expecting their finances to worsen over the next year. And, predictably, the willingness to make major purchases has slumped to a survey record low (the HFI survey was first carried out in February 2009).

Inflation perceptions have jumped to a new high, and the cash available to spend is falling at fastest rate since May 2009.

Check Also

What More UK Agrees Export Deal with Sri Lanka

What More UK has agreed the terms of a deal which will see its products …