The Financial Position of British Households: Evidence from the 2011 NMG Consulting Survey

14 Pages Posted: 5 Jan 2012

See all articles by Kate Reinold

Kate Reinold

Bank of England - Monetary Analysis

Kishore Kamath

Bank of England

Mette Nielsen

Bank of England

Amar Radia

Bank of England

Date Written: December 19, 2011

Abstract

Over the past year the recovery in the UK economy appears to have slowed. That weakness in UK demand has been driven by falling consumption, reflecting the challenging environment facing households. This article examines the factors affecting households’ budgets and spending decisions using the latest survey of households carried out for the Bank of England by NMG Consulting in September 2011. The survey suggests that most households had experienced an income squeeze, and credit conditions remained tight. Around half of households reported that they had been affected by, and had responded to, the fiscal consolidation. Reported levels of financial distress had remained elevated but had been contained by the low level of Bank Rate and some forbearance by lenders. Looking ahead, households were uncertain about future incomes and expected to continue to be influenced by the fiscal tightening. Households in aggregate, did not expect to change the amount they saved.

Suggested Citation

Reinold, Kate and Kamath, Kishore and Nielsen, Mette and Radia, Amar, The Financial Position of British Households: Evidence from the 2011 NMG Consulting Survey (December 19, 2011). Bank of England Quarterly Bulletin 2011 Q4, Available at SSRN: https://ssrn.com/abstract=1979387

Kate Reinold

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Kishore Kamath (Contact Author)

Bank of England ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Mette Nielsen

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Amar Radia

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

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