By Vittorio Hernandez

London, England, United Kingdom

A survey of 1,500 adults between July and August found that 40 percent of British households suffered from financial deterioration. It was the fastest pace of financial worsening since February 2009.

The respondents said their debt levels grew and savings and income dropped. Only 6 percent of the households said their finances improved during the past few weeks.

Financial information company Markit, which conducted the survey, said it was the 11th consecutive month that income from employment dipped, with the August decline the steepest decline in take-home pay for nine months. The situation was worsened by spiraling prices.

The level of household debt rose for the fifth straight month and at the fastest pace since November 2010.

Markit disclosed that the financial setback was experienced across all income groups, age ranges and regions, but the worst-hit were residents north of England.

Markit senior economist Tim Moore said that since consumer spending accounts for about two-thirds of Britain's gross domestic product, the impact is expected to be felt in second half statistics for 2011.

The survey also found that 49 percent of the respondents expect worse days ahead insofar as their finances are concerned, while 27 percent expect an improvement.

Moore confirmed that Britons' purchasing power would not likely ease in the near term, while the Bank of England forecast the inflation rate to reach 5 percent toward the end of this year as utility and oil-related prices go up.

 

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World - Many British Households See Steeper Rise in Debt | Global Viewpoint