Households’ disposable income declined at a slower rate in July than previous months, but spending remained broadly unchanged.
Markit/YouGov’s Household Finance Index said that the rate of decline in households’ general finances has eased.
It added that although the supply of credit continued to deteriorate it did so at a slower level in July than in previous months, and that households’ pessimism about the coming year had eased.
The index, which tracks month-on-month changes in finances rose from 37.1 in June to 38.5 in July.
Around 31% of respondents to the index survey said that their financial situation had worsened compared to a month ago, with only 8% reporting an improvement. However the rate of deterioration was the slowest since the survey started in February.