Thursday, Jun 04

Pandemic hits UK households hard in May

Household incomes from employment fell at the sharpest rate since the series began in February 2009.
18.05.2020 - 13:07

The financial health of British households has deteriorated sharply this month, though not as quickly as in April when the coronavirus lockdown all but closed down the economy, a survey showed on Monday.

INDEX IS ITS LOWEST IN MORE THAN 8 YEARS

The IHS Markit Household Finance Index rose in May to 37.8 from a 34.9 in April, which was its lowest in more than eight years.

“The financial toll of the coronavirus pandemic and the consequent public health measures has been heavy, with recent survey data showing unparalleled declines in workplace activity and incomes from employment,” IHS Markit economist Joe Hayes said.

“It is also disconcerting to see so many survey respondents indicating concern towards job security, which could have a significant impact on consumer spending if the negative economic impact of the pandemic is protracted.”

The Bank of England expects the economy to contract by around a quarter during the three months to June, and for there to be the biggest full-year fall in output in more than three centuries.