With public sector cuts and fears of a slow economic recovery on the horizon, pessimism reigns among UK households, say the Bloomberg-YouGov Household Economic Activity Tracker (HEAT) September results.
- Consumers’ outlook for their household financial situation hits lowest level on record (-33%)
- Month over month results remain rooted in negative territory with no change from August to September (-24%)
- 52% of those surveyed expect their household situation to be worse in 12 months
- Inflation is being felt with 68% of respondents saying that prices rose from August to September
- 22% of respondents felt the value of their home had declined in the previous month
- 32% of respondents reported their household financial situation worsened over the previous month while only 8% reported an improvement.
- Job security is not strong with nearly a quarter of respondents (24%) feeling their jobs are less secure than a month previous.
- Household debt continues to be an issue with 21% of respondents stating they had more debt than a month ago, with just 16% saying their amount of debt had decreased.
- 18% of respondents told us their amount owing and outstanding on credit cards, overdrafts and other unsecured loans had increased in the past month.
Todd Davis, Financial Services Consulting Director, commented: 'Since the run up to the General Election people’s outlook for the future has grown increasingly negative hitting a record low on the HEAT. This is a big change considering that at the beginning of the year the HEAT was approaching positive territory for the first time since it began. With more people saying their debts are increasing and savings shrinking, forecasts for an ‘L-shaped’ recovery seem more and more likely.'
The Bloomberg-YouGov Household Economic Activity Tracker tracks household sentiment across a variety of measures on a monthly basis. Each month 2,000 surveys are completed with a nationally representative audience in the UK. The HEAT is calculated by subtracting the percentage of those who said their situation had got worse from those who said it had got better.