(Adds detail from release, context)
By David Milliken
LONDON, Sept 23 (Reuters) - British households are more
worried about their financial prospects now than at any time
since 2013, partly because of concerns about the economic and
political outlook as the country prepares to leave the European
Union, a monthly survey showed on Monday.
The IHS Markit Household Finance Index sank to a four-month
low of 43.1 in September from August's 43.6, as households'
relatively upbeat assessments of their current situation was
undermined by darker future prospects.
Willingness to make major purchases such as cars or holiday
bookings was the lowest since December 2013, and the assessment
of their financial situation in 12 months was the most negative
since November 2013.
"Political and economic uncertainty had caused nervousness
surrounding job security," IHS Markit economist Joe Hayes said.
Prime Minister Boris Johnson is determined to take Britain
out of the European Union by Oct. 31, without a transition
agreement if necessary, despite opposition from parliament.
Although unemployment is low and wage growth is at an
11-year high, Britain's economy shrank in the last quarter and
subsequent business surveys have been weak, as companies blame
the United States-China trade conflict and no-deal Brexit risks.
"(The) latest data suggest that the robust performance of
the UK labour market may not be sufficient to dispel the
pessimistic financial outlook, which could ultimately see weaker
consumption trends at a time where the economy hinges on
domestic resilience," Hayes said.
Britain's Thomas Cook, the world's oldest travel
company, collapsed on Monday after struggling to pitch itself to
a new generation of tourists.
Despite their gloomier mood, households' expectations of
Bank of England policy were little changed. Some 23% think the
BoE will cut interest rates from the current 0.75% during the
next 12 months, unchanged from August. Almost 60% think it will
increase rates, up from 58%.
Unlike their counterparts in the United States and euro
zone, Britain's central bankers say they still intend to
gradually raise rates if the government concludes a Brexit deal
and the economy picks up.
(Reporting by David Milliken; editing by Michael Holden, Larry
King)
