Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

U.K. Household Finance Index slips to 42.5 in April, rising inflation and subdued pay growth create renewed squeeze

Markit Household Finance Index (HFI) for April showed that squeeze on UK household finances worsened during April. April seasonally adjusted Household Finance Index fell to 42.5, from 43.1 in the previous month. It was one of the lowest readings seen since the summer of 2014.

The HFI is compiled each month by Markit, and is intended to anticipate changing consumer behaviour accurately. Data showed that weak pay growth and rising living costs exert greater pressure on UK household finances. Survey data showed sharpest fall in cash available to spend since August 2014.

That said, despite a greater squeeze on financial wellbeing, the latest survey suggested that consumer spending remained resilient. Households reported the fastest rise in spending since last June. There was an erosion of savings and greater demand for unsecured credit.

“Evidence that consumers are opting to maintain spending rather than belt-tighten provides a positive signal for UK economic growth in the short-term," said Tim Moore, senior economist at IHS Markit.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

Fintech Week Chicago

April 28 06:00 UTC Released

ZAPvt Sector Credit Ext.*

Actual

4.95 %

Forecast

Previous

5.26 %

April 28 06:00 UTC Released

ZAM3 Money Supply YY*

Actual

5.62 %

Forecast

Previous

6.63 %

April 28 06:45 UTC 2525m

FRPvt Sector Credit Ext.*

Actual

Forecast

1.4 %

Previous

1.4 %

April 28 06:45 UTC 2525m

TRCPI (EU Norm) Prelim YY

Actual

Forecast

1.4 %

Previous

1.4 %

April 28 06:45 UTC 2525m

TRProducer Prices MM

Actual

Forecast

Previous

-0.2 %

April 28 06:45 UTC 2525m

FRConsumer Spending MM

Actual

Forecast

0.5 %

Previous

-0.8 %

April 28 06:45 UTC 2525m

FRProducer Prices MM

Actual

Forecast

Previous

-0.2 %

April 28 07:00 UTC 4040m

TRCPI (EU Norm) Prelim YY

Actual

Forecast

Previous

-3.69 %

April 28 07:30 UTC 7070m

TRProducer Prices MM

Actual

Forecast

Previous

8.00 %

April 28 07:30 UTC 7070m

EZInfl Fcast Curr Yr*

Actual

Forecast

Previous

8.00 %

Fintech Week Chicago
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.