UK households upbeat about finances after Brexit 'wobble'
Households are expecting their finances to bounce back following a post-Brexit slump, a new report has discovered.
Markit's Household Finance Index (HFI) for August - a measure used to anticipate consumer behaviour - showed a recovery in households' perceptions regarding their finances over the next 12 months, after a dismal slump in July.
The year ahead outlook came in with a reading of 49.8 in August, up from July's two-and-a-half-year low of 47.1, which was the HFI's first measure of consumer sentiment after the UK referendum.
It is still below the benchmark of 50, which indicates an overall deterioration of household finances.
Nevertheless, the results suggest that consumers are more upbeat just two months after the referendum.
"The outlook for household finances stabilised in August after last month's wobble following the Brexit vote," explained Jack Kennedy, senior economist at Markit.