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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.

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June 23 14:30 UTC Released

USECRI Weekly Annualized*

Actual

3.4 %

Forecast

Previous

3.7 %

June 23 14:30 UTC Released

USECRI Weekly Index*

Actual

143.7 %

Forecast

Previous

144.0 %

June 26 08:00 UTC 18081808m

GBIfo Expectations*

Actual

Forecast

Previous

106.5 k

June 26 08:00 UTC 18081808m

DEIfo Business Climate*

Actual

Forecast

114.4 bln BRL

Previous

114.6 bln BRL

June 26 08:00 UTC 18081808m

DEIfo Expectations*

Actual

Forecast

106.4 %

Previous

106.5 %

June 26 08:00 UTC 18081808m

DEIfo Current Conditions*

Actual

Forecast

123.3 mln

Previous

123.2 mln

June 26 08:30 UTC 18381838m

GBIfo Expectations*

Actual

Forecast

Previous

40.750 k

June 26 08:30 UTC 18381838m

BRBBA Mortgage Approvals

Actual

Forecast

Previous

40.750 k

June 26 11:00 UTC 19881988m

BRBBA Mortgage Approvals

Actual

Forecast

Previous

84.2 k

June 26 11:00 UTC 19881988m

RUFGV Consumer Conf*

Actual

Forecast

Previous

84.2 %

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