Squeeze On UK Household Finances Moderate In March

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British households' current financial pressures moderated in March, underpinned by higher workplace incomes and softer inflation, results of a survey by IHS Markit and market research company Ipsos Mori revealed Monday.

The seasonally adjusted Household Finance Index, of HFI, rose to a 3-month high of 43.1 in March from 42.4 in February.

However, any score below 50 suggests pessimism regarding finances among the U.K. households.

UK households remained downbeat about the prospects for their financial well-being over the next 12 months.

The corresponding index came in at 47.6 in March, below the neutral 50.0 no-threshold but broadly unchanged from the levels seen so far in 2018.

The survey indicated positive developments in terms of pay, workplace activity and job insecurity in March.

On the price front, inflation expectations for the year ahead continued to ease in March, with the index falling to a 4-month low of 88.9 from 90.0 in February.

March data also revealed that close to 57 percent of UK households expect a rate rise within the next six months, down from 60.0 percent in February.