British Households: Less Expenses, Yet No Improvement

Economic research company Markit on Monday mentioned that most British households had the smallest expenses in almost two years after the financial crisis of 2007-2009. The Household Finance Index had risen to 39.0 in October, having the highest level since 2010.

However, the research company states that even if the levels are quite nominal, many citizens still experienced worsening conditions rather than improvements. Many UK citizens have had stable economic development through better employment opportunities. The stable economies have helped them have more money in reserve and repay their debts in the last two years.

UK citizens continue to doubt about the stability being retained further in the future. Inflation is troubling most citizens, which had reached an all time high September last year of 5.2 percent. Last month, the inflation dropped to 2.2 percent and showed that many citizens were employed, the numbers breaking all records from 1971 when records began in 1971.

According to Markit, households may still tighten their spending and their belts in the next few years even if pressures may have returned to a sense of normalcy once again because of their spending sentiments. This is to prepare for the worst that can happen and that what is happening in the economy might only be temporary.

Source: Reuters

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What People Really Want From Their Bank

It’s no secret that we love banker bashing here at Financial Reform. With a laundry list of scandals from mis-sold endowments, unfair bank charges, mis-sold payment protection insurance, mis-sold mortgages and ridiculous bonuses following huge bailouts… not to mention the more recent mis-sold interest rate swaps and LIBOR fixing scandals- confidence in the mainstream UK banks is at an all time low.

We reported some time ago that, smaller banks such as Metro an Handelsbanken, had capitalised on this and increased their market share in recent times. And now it seems that the Private Banking sector is seeing a similar increase as more and more people are moving away from the mainstream banks.

Our friends at Duncan Lawrie have completed a survey to gauge the perceptions of the UK banking industry – how dishonest the banking sector is perceived to be; what people really want from their banks; what would influence people to change banks; and perceptions of private banks. Take a look at this infographic:

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