“The overall financial situation facing UK households suffered the largest decline on record in Q3 2011 according to the latest research from the Alliance Trust Research Centre. Our UK Financial Reality Index dropped from 79.6 to 56.7, the lowest level since Q4 2008. The index has been below the critical level of 100 since Q3 2004. The deterioration during Q3 was due to a decline in all three sub-indices for the first time since Q3 2008. The economic background index is now at its lowest level since Q2 2010, driven by weaker GDP growth and a rise in the unemployment rate. The household budget index fell by 10 points in Q3 to the lowest level since the end of 2008. This was due to continued pressure on household budgets from high basic goods prices and muted wage growth, which is causing a fall in real earnings and loss of purchasing power. The net wealth index is now the weakest component, having fallen to its lowest level since Q3 2009. This reflects a sharp decline in stock market prices together with a further small fall in house prices.”
Sorry, comments are closed for this post.