Consumers say their financial situation is worsening for third quarter running

Consumers have reported a worsening of their perception of their own financial situation for three consecutive quarters for the first time in more than two years, figures show.

The Office for National Statistics (ONS) economic wellbeing indicators for the UK for the last quarter of 2017 show that consumers' perception of their finances fell from an average balance of 0.7 in the last quarter of 2016 to minus 1.6 a year later.

Among the indicators included are gross domestic product (GDP) per head, which grew by 0.8% in real terms in the same quarter compared with a year earlier, real household disposable income increasing by 1% and net national disposable income per head increasing by 2.1%.

The ONS reported: "However, for the first time in over two years, consumers reported a worsening of their perception of their own financial situation for three consecutive quarters."

The figures also include the net household property wealth of those aged 60 to 62 years widening from six times that of those aged 30 to 32 years during July 2006 to June 2016 to 17 times by July 2014 to June 2016.

Liberal Democrat leader Vince Cable said: "While it is now clear that Brexit has negatively impacted the economy by increasing inflation, eroding wages and holding back business investment, this data proves that these factors are translating into lower economic wellbeing.

"With the household savings ratio at record lows and indebtedness approaching pre-crisis levels, it is no wonder that people feel financially insecure."

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