U.K. Household Finance Sentiment Drops Slightly From Record High: Markit





Confidence among British households regarding their personal finances eased modestly in March, but hovered near February's record high signaling that the squeeze on finances remained less marked than seen over the past five years, survey data published by Markit Economics revealed Thursday.
The seasonally adjusted household finance index, which measures the overall perception of financial well-being, dropped to 41.9 in March from 42.1 in February, which was the highest score in the history of the survey. Index readings below 50 suggest weakness in confidence.
Confidence was supported by a fourth consecutive growth in income from employment. Also, households' perception of the current inflation situation dropped during March to the lowest level since December 2009.
At the same time, spending increased for the first time so far this year, helped by stronger economic conditions as highlighted by a robust rise in workplace activity.
The outlook component of the survey, which measures financial well-being over the next 12 months, dropped to 49 in March from a survey-record high of 50.5 in February. However, the latest reading was the second-highest since the series began in February 2009.
"Overall, the survey suggests that the UK economy has remained on a solid recovery path during the first quarter of 2014,"Markit Economist Tim Moore said.


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