UK households' finance outlook dropped to the lowest level in a year in July, results of a survey by Markit Economics and financial information provider Ipsos Mori revealed Wednesday.
The household finance index rose to 45.3 in July from 43.8 in the previous month. A score below 50 suggests pessimism regarding finances among the U.K. households. However, the latest score was slightly above the average recorded in the second quarter this year.
The index measuring the outlook for financial well-being over the next twelve months, dropped to 48.6 in July from 50.1 in June. The latest figure was below the 50.0 threshold for only the second time in ten months.
Workplace activity expanded strongly in July, but remained slightly weaker than the average over the current 38-month sequence of growth.
Income from employment continued to increase in July, albeit modestly. Households remained pessimistic about their job security during the month.
On the price front, current inflation perceptions climbed to the strongest so far this year in July, with the corresponding index climbing to 64.9. Similarly, the the index measuring expected living costs over the year ahead rose to seven-month high of 79.9 in July.
The survey showed that households took a more hawkish stance following Bank of England Governor Mark Carney's recent speech. Approximately 44 percent of survey participants expect tighter monetary policy within six months, versus 31 percent before the speech was made.
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