UK household finances drop to record low

Calculated by the Alliance Trust Research Centre, the index looks at a range of indicators which predict consumer financial confidence and willingness to spend. The three key components of financial reality are: household budget, economic background and household wealth. Throughout Q3, the Financial Reality Index declined to well below the critical level of 100. The sharpest decline was in household wealth. Falling house and equity prices have impacted the index of household net wealth to a record low in Q1, plunging to 6.9 from 41.5. Household budget has dropped from 31.9 to a reco...