U.K. household record strain on finances in November, Markit Household Finance Index stayed unchanged

Consumers in the U.K. have reported strain on their finances in November. The seasonally adjusted IHS Markit U.K. Household Finance Index came in at 44.4 in November, unchanged from the print seen in the prior month. However, the index continues to indicate negative assessment towards current finances by U.K. households. The outlook for the year ahead also remained stuck in downbeat territory in November, although the respective index was widely unchanged from that seen in October.

Consumers in the U.K. continued to keep their negative view about job security in the latest survey period. Those employed in sectors such as retail and manufacturing reported a negative outlook towards job security. However, growth of both incomes from employment and workplace activity was registered in November. Earnings rose at a modest pace that the most rapid since July, although workplace activity grew at a slightly weaker rate.

Living costs and inflation expectations U.K. households recorded greater living costs in November, although the perceived rate of inflation decelerated from October and was the softest in 10 months. Inflationary pressures are expected in the coming 12 months, although the expected rise in living costs dropped to its weakest since May.

Meanwhile, the latest survey data indicated minor adjustments with regards to U.K. household interest rate expectations in November. In all, the majority of surveyed households expect the next Bank of England move to be an interest rate hike, with around 58 percent expecting this to come within the next year. The most marked shift was seen at the shorter horizon, where the percentage expecting a rise in the next three months falling by four percentage points.