Brexit increases household finance fears

Uncertainty after the Brexit vote has left UK households feeling the most pessimistic about their finances for more than two years, according to a survey produced by research group Markit.

Markit’s household finance index, which tracks Britons’ sense of financial wellbeing using data collected by polling company Ipsos Mori, showed a fourth straight month of negative sentiment, and the worst outlook for future finances in two and a half years.

Worries about job security also rose thanks to the first recorded drop in workplace activity since May 2012, despite the UK’s unemployment rate being at an 11-year low.

The survey, which questioned 1,500 people last week, showed pessimism across all income brackets, and follows similar reports of collapsing confidence among businesses and consumers.

Philip Leake, economist at Markit, said:

Markit’s latest HFI survey suggests that the Brexit vote has badly affected households’ views on their finances. With future prospects clouded by uncertainty, July data pointed to the worst financial outlook in two-and-a-half years