UK households’ finance outlook rebounded in September to the highest level in six months on lower inflation pressures, results of a survey by Markit Economics and financial information provider Ipsos Mori revealed Wednesday.
The seasonally adjusted Markit Household Finance Index rose slightly to 43.7 in September from August’s eight-month low of 43.4.
A score below 50 suggests pessimism regarding finances among the U.K. households. However, the index remained well above the average since the survey began in 2009.
The index measuring the outlook for financial well-being over the next twelve months, rose to 50.6 in September from 49.3 in August. The latest reading was the highest since March and well above the series average of 43.3.
Workplace activity continued to increase in September, with the corresponding index rising to 56.1 from 55.1 in August. Income from employment also rose at the fastest pace in five months.
At the same time, households remained pessimistic about their job security during September.
On the price front, current inflation perceptions moderated to a three-month low in September, with the index falling to 63.2 from 64.6 in the preceding month. Similarly, the index measuring expected living costs over the next twelve months eased to 80.1 in September from an eight-month high of 81.3 in August.
The survey showed that approximately 72 percent of survey participants forecast a rise in the Bank of England base rate by this time next year.
The material has been provided by InstaForex Company – www.instaforex.com