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UK Household Finance Index At 11-Month Low

UK households' assessment of their financial well-being fell to the lowest level in eleven months in February, survey data from the IHS Markit showed on Monday.

The IHS Markit Household Finance Index, or HFI, fell to 43.4 from 44.7 in January, marking the lowest reading since March 2018.

Job security perceptions weakened for the fourth straight month to lowest since January 2018, hurting the year-ahead financial health expectations. February survey showed the highest degree of pessimism regarding job security since January 2018.

Softer growth was seen both work place activity and income from employment.

Meanwhile, living costs rose at an accelerated pace, and the rate of inflation was weak relative to those seen throughout most of 2018.

Expected living cost inflation for the coming 12 months climbed in February, having been among the lowest for two years in January.

The general view among UK households towards UK monetary policy was changed in February by Bank of England. The majority, 79 percent, continued to expect the next move by the Bank of England to be an increase within the next two years.

"The latest HFI survey also signals that the improvement in real earnings growth, which has been driven by higher nominal pay and softer inflation, may not necessarily translate into boosted spending by UK consumers," IHS Markit economist Joe Hayes said.

"The impact on confidence caused by Brexit uncertainty continues to pose a notable risk to the domestic economy, also highlighted by job security perceptions becoming increasingly negative in February."

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