Household finances continue to deteriorate

22 June 2009

According to the `Household Finance Index` produced by Markit (in conjunction with YouGov), UK households are still suffering increasing financial pressure.

32% of respondents saw their financial situation deteriorate in June compared with the previous month - while just 6% said their situation had improved, The Telegraph reports.

However, Markit`s chief economist, Chris Williamson, did mention that consumers` house price expectations had improved dramatically.

But he warned: "While this adds to hope that the economy may have experienced a turning point in the second quarter, spending is nevertheless being reined in as households grew increasingly worried about job security, adding to fears that any recovery in the economy will be subdued by weak consumer spending."

A debt expert for Think Money added: "At a time like this, people may be more worried than usual about the prospect of debt - and with household finances continuing to deteriorate, people already in debt may be finding it increasingly hard to keep up with their debt repayments and other commitments."

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Tags: household, finance, economy, debt, money, jobs, job security, debt repayments

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