British households’ finance outlook improved in March to the strongest level in fourteen months on lower inflation perceptions, while their financial woes remained relatively weak, results of a survey by Markit Economics and financial information provider Ipsos Mori revealed Wednesday.
The seasonally adjusted Markit UK Household Finance Index, or HFI, dropped slightly to 44.8 in March from 45.3 in the previous month.
A score below 50 suggests pessimism regarding finances among the U.K. households.
The index measuring the outlook for financial well-being over the next twelve months, rose to 51.5 in February from 50.5 a month ago. The latest reading was the highest since January 2015.
Workplace activity grew for the forty-sixth consecutive month in March, though the rate of increase eased from the prior month. Meanwhile, income from employment fell for the first time since the end of 2014.
Households remained pessimistic about their job security during the month.
On the price front, current inflation perceptions accelerated to a seven-month high in March. Nevertheless, it continued to point to historically low prices pressures.
Similarly, the index for expected living costs over the year ahead rose to its highest since August 2015. But, it still signaled relatively muted inflation expectations.
The survey showed that approximately 45 percent of the survey participants forecast a rise in the Bank of England base rate by this time next year. Moreover, this was the lowest proportion since November 2013.
The material has been provided by InstaForex Company – www.instaforex.com