Expectations over household finances have dropped to a six-month low, a new survey has show The monthly Markit Household Finance Index crept down to 35.0 in October from 35.1 in September, still well below the 50 level that separates improvement from a deterioration in household finances. After rising slightly during the summer, expectations for household finances in a year's time fell to 34.5, its lowest point in six months and its biggest month-on-month fall since the survey began in February 2009. Tim Moore, senior economist at Markit, said: “"Household finances were once again gripped in a vice of subdued real incomes and heightened job insecurity in October. Households also expect a continued erosion of their real incomes next year, despite inflation expectations falling back slightly in October.” Households reported a modest rise in spending in October, although the measure of the cash they had available to spend fell sharply, suggesting higher prices and lower incomes were taking a toll on consumers.

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