Economic Buzz: UK households remain pessimistic about economic conditions

UK households remained pessimistic about economic conditions and their financial wellbeing in July, survey data from S&P Global showed on Monday. The S&P Global consumer sentiment index edged up marginally to 45.1 in July from 45.0 in June. A score below 50 signals deterioration. The index showed that households expect their financial wellbeing to weaken again in July but at the least pronounced pace in seven months. There was a solid improvement in labor market sentiment though household debt accumulated at the steepest pace in 15 months due to high inflation and elevated borrowing costs. Households were also more cautious towards spending and major purchasing activity was curtailed at the strongest pace in three months. A net 17 percent of households expect an increase in interest rates compared to 16 percent in June.

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