Survey reveals household finances are squeezed

| August 23, 2010 | 0 Comments
”Survey

A survey of 2,000 households, conducted by market researchers Markit and YouGov, has revealed confidence has been knocked and households are under pressure financially.

The reason for the fall in confidence comes as households are fearful of losing their jobs as the coalition Government embarks on massive spending cuts and tax hikes.

Approximately 600,000 public sector workers are expected to lose their jobs in the next five years, while a higher VAT rate will hit households.

Despite a growing economy, the Household Finance Index suggests individuals are not benefiting and are instead worried about higher living costs.

Almost one third of households questioned said their finances had deteriorated, compared to 6% who said they had improved.

Tim Moore, economist at Markit, said: “Stronger growth in the UK economy has done little to put a floor under the downturn in household finances.”

Furthermore, a struggling housing market has led almost one quarter of respondents to believe their property lost value in August, compared with 9% who thought it had risen.

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