23 January 2008
Britons are feeling more and more pressurized by their worsening finances, a new study from Alliance Trust has shown.
The investors' latest Financial Reality Index, which measures a variety of money concerns among UK adults, fell 10% for the fourth quarter of 2007 - the biggest fall in a year and a half.
Rising food and energy bills and a growing personal debt burden - caused by personal loans, credit cards and mortgages - have led to the fall.
Further economic slowdown - with the housing market coming off the boil and the fallout from the credit crunch continuing - might also result from consumers reducing their spending this year, Alliance Trust also claimed.
Head of Research at the investors Shona Dobbie commented: "Our latest Financial Reality report highlights how acute the consumer’s predicament has become; our measure of consumer wellbeing shows a worsening picture not only for household budgets, but for consumers’ net wealth and the economy as well."
She added: "Our study shows that consumers have apparently spent beyond their means for the last two years, resulting in ever higher levels of debt - this trend is set to end."
© 2008 Adfero Ltd
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