A theme we have explored here regularly over the past twelve months is the growing pressure on household budgets.
This pressure is the result of low interest rates, high price inflation and low wage inflation.
New research from financial information company Markit has found that nearly 40% of households saw their finances deteriorate between July and August this year.
This means that finances worsened at their fastest pace since the middle of the last recession in February 2009.
Only 6% of households experienced an improvement in their finances during this time.
The Household Finances Index monitored by Markit had fallen for the third month in succession and now stands at its lowest level since it was created at the start of 2009.
With the UK economy struggling to recover, consumer sentiment is likely to remain poor for some time given this continued squeeze on household budgets.
Financial Planning can help to identify areas for savings and steer a path through an uncertain economic environment.
Photo credit: Flickr/Philippe Put
