UK households’ finance outlook worsened for the first time in eight months in May, while their financial woes eased to a record low, 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 45.8 in May from 45.7 in the previous month.
A score below 50 suggests pessimism regarding finances among the U.K. households. However, the latest data pointed to the weakest squeeze on UK household finances since the survey began in early 2009.
The index measuring the outlook for financial well-being over the next twelve months, dropped to 49.1 in May from 50.6 in April. The index entered below the neutral 50.0 threshold for the first time since last September.
Workplace activity continued to expand in May, but the rate of growth was unchanged from April’s 17-month low. Income from employment also rose further in May, marking a five-month period of salary growth. Households remained pessimistic about their job security during the month.
On the price front, current inflation perceptions climbed to a five-month high in May, with the corresponding index rising to 64.6. Similarly, the index measuring expected living costs over the next twelve months posted 79.1 in May, which was the highest reading since December last year.
The survey showed that approximately 12 percent of survey participants expect the Bank of England to tighten monetary policy with in the next three months.
The material has been provided by InstaForex Company – www.instaforex.com