Households in the UK have cut back on big purchases as confidence levels dropped further in August, over worries about a possible recession.
According to the latest IHS Markit household finance index, which measures perceptions of financial well-being, confidence among UK households fell to 43.7 in August, from 44.3 in July, marking the lowest level in three months.
The survey found that concerns over Brexit and a possible recession have made households increasingly pessimistic about job security, with the survey posting the strongest degree of negativity since March.
Meanwhile, income from employment continued to rise, although the rate of growth narrowed to the weakest figure for five months.
Joe Hayes, economist at IHS Markit, said: “Latest survey data continued to highlight a fragile state among UK households towards their financial well-being. The Brexit haze, uncertainty over the political environment and the increased possibility of the UK entering recession appear to have dented expectations, which dipped into negative territory following positive readings in both June and July.”
NAM Implications:
- Understandable given political/economic issues, and the inevitable impact on jobs.
- In which conditions any growth comes at the expense of the competition.
- In other words, time to reassess your relative competitive appeal.
- See Buying Mix Analysis
