Published: 24 Jan 2011
Last Updated: 09 Oct 2013
British households are becoming increasingly concerned about their finances – hardly surprising after a tough few months of budget cuts, price increases, and a relatively weak job market. But figures from the Markit Household Finance Index this month suggests Britons are right to be concerned after household finances deteriorated at the fastest pace since 2009.
The index dropped to a 20-month low and fell to 36.1, down from 39.9 in December. Part of this fall was due to concerns about high inflation, as 89% of households said they expected prices for average household goods to increase this year.
Perhaps the biggest impact will be the effect it has on consumer confidence. According to the survey by Markit, more than half of respondents showed a reluctance to making big purchases this year.
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