UK’s financial well-being hits 22 month low

According to survey conducted by Markiteconomics, UK Household finance index (HFI), which is a perceptive measure of financial wellbeing has dropped to 22 month low, ahead of Britain’s referendum over EU.

According to Markit, “For the first time since August last year, financial perceptions worsened in each of the eight monitored job sectors. Those working in media/culture/entertainment were the most downbeat, closely followed by retail employees”. In May the index dropped to 42.3 from 45.1

Key reasons behind the drop has been higher inflation perception, which is strongest since December 2014, lower wage growth and pressure on savings.

According to economist, situation is likely to worsen far from her, if Britons choose the exit path in June referendum. In such a scenario, investments, both domestic and foreign likely to drop, pressuring wages through job losses, higher inflation due to drop in Sterling and uncertainties regarding trade. In the short –run, according to most Brexit is likely to be an economic storm.

Pound is currently trading at 1.453 against Dollar.