Householders gloom deepens over price fears
Monday 22 October 2012
Confidence among households over the state of their personal finances has slumped as families brace themselves for soaring gas and electricity bills this winter, experts warned today.
Despite inflation dropping to its lowest level for nearly three years in September – 2.2 per cent – households' optimism over their finances during the next year slumped in October, according to the financial information firm Markit.
With four of the main six energy firms raising prices by up to 9 per cent, Markit reported an "abrupt end" to the improving outlook this month. Its household finance index, where a score below 50 represents declining sentiment, sank from 44.3 to 37.4, while more than twice as many households expect their finances to deteriorate as those who think they will improve over the next year.
Food prices are also likely to add pressure to household budgets over the next 18 months.
Tim Moore, Markit's senior economist, said: "Households indicated sharp downward revisions to their financial outlook in October, bringing a rather abrupt end to the improvements seen throughout the summer. While pressures on current finances were reported to have moderated again, helped by stabilising incomes and lower debt, the steep reversal in future sentiment is a clear signal that households are likely to keep a tight rein on spending in the months ahead."
elephant appealThe first 23 lots in our charity auction have now gone. But there are 22 more still up for grabs
The battle for control of Stieg Larsson's £30m legacy
Geoffrey Macnab does not like the comedian's big screen debut
Look beyond the usual shows for the best festive telly
Michelle Nijhuis' daughter insists (s)he is, and she learnt a valuable lesson on gender in books
newsFormer soldier taped 33 of the animals to the floor and then stamped on them one by one
Kennington bus crash: 32 injured after double decker hits tree in south London
Robin Thicke named sexist of the year 2013
PAs cleared of fraud - and Nigella Lawson left reeling at 'ridiculous sideshow' of drug allegations and public dissection of marriage to Charles Saatchi
Cycle death inquest: Boyfriend hugs driver of 32 tonne tipper truck that killed his girlfriend
Apollo Theatre collapse: Scores injured after ceiling collapses in London's West End
- 1 Sun will 'flip upside down' within weeks, says Nasa
- 2 Christmas comes early: Justin Bieber is 'retiring from music'
- 3 Iain Duncan Smith leaves Commons food banks debate early
- 4 Cycle death inquest: Boyfriend hugs driver of 32 tonne tipper truck that killed his girlfriend
- 5 Burglar steals video tapes of child abuse, hands them into police
- < Previous
- Next >
iJobs Money & Business
£Negotiable: Citifocus: High calibre individual with institutional client serv...
£120000 - £150000 per annum: Cornwallis Elt : Programme Manager, Strategy Lead...
£55000 - £120000 per annum: Pro-Recruitment Group: The Financial Services Tran...
£600 - £700 per day: Harrington Starr: Client based in West London is looking ...