20.01.202011:03:00UTC+00Pressures On British Household Finances Ease: IHS Markit

Pressures on the UK household finances eased in January, a consumer survey from IHS Markit showed Monday.

The household finance index rose to 44.6 in January from 43.2 in December. This was the highest score in 12 months. However, the indicator for future financial wellbeing expectations dipped back into negative territory.

Further, the survey showed that both workplace activity and incomes from employment continued to increase in January. Meanwhile, the perceptions of job security remained downbeat in the latest survey period.

Households reported the joint-slowest increase in expenses since October 2016. A similar trend was seen regarding inflation expectations. Further, households' expectations towards house prices improved notably in January.

While falling living cost pressures are stimulating purchasing power, UK households are aware that weak economic conditions have led to an increased likelihood of lower interest rates, Joe Hayes, an economist at IHS Markit.

"How this will impact consumer spending behavior will be crucial to the UK's growth prospects," Hayes added.