UK Consumer Sentiment Remains Downbeat: S&P Global

(RTTNews) - British 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 rose slightly to 45.1 in July from 45.0 in June. However, the score below 50 signals deterioration.

The index tracks household financial wellbeing, labor market conditions, household spending, savings and debt.

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. They regained a sense of security in their job roles, the S&P Global survey showed.

Although income increased, households reported a slowdown in salary inflation in July.

Household debt accumulated at the steepest pace in 15 months due to high inflation and elevated borrowing costs.

Due to a further decline in disposable income, households were more cautious towards spending. 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.

S&P Global Market Intelligence Economist Maryam Baluch said data highlighted significant financial pressures confronting lower-income households. Disparities between lower income households and higher income groups widened with respect to earnings and debt, Baluch noted.

"As the year progresses, external challenges are likely to contribute to ongoing uncertainty for households," the economist said.

"Nevertheless, declining borrowing costs and sustained income growth may help alleviate some financial pressures," she added.