Squeeze tightens on households

Household finances have plummeted at the sharpest rate for two years – and the average amount of cash Britons have available to spend dropped at a record rate in March, according to the Markit household finance index released today. The slump left households at their most pessimistic since the survey began in February 2009, Markit said. There was also worrying news for the jobs market, as the survey reported the sharpest decline in job security for eight months. Furthermore, price pressures continue to squeeze British households, with around 82 per cent of respondents reporting a monthly increase in prices paid for goods and services. Inflation expectations dipped only slightly compared to January’s record high.