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U.K. Household Finance Index Higher In August, Says Finance Survey

The U.K. household finance index rose for the third month in August and increa

The U.K. household finance index rose for the third month in August and increased to its highest value since December 2010, according to data provided by a Markit Economics finance survey.

The index had a

The U.K. household finance index rose for the third month in August and increased to its highest value since December 2010, according to data provided by a Markit Economics finance survey.

The index had a reading of 38.9 in August, which represented an increase over the figure of 37.5 in July.

"While the Olympics perhaps helped give a warmer glow to household morale, the breadth of improvement spanning debt trends, inflation expectations, incomes and job security points to a more fundamental easing of the financial downturn," Tim Moore, senior economist at Markit and author of the report, said in a statement. "The overall strain on finances was the least marked since December 2010."

The optimism that households had about their financial outlook rose to its highest level in almost two-and-one-half years. Their expectations of inflation declined to its lowest point in six months.

The finance survey indicated that the debt load of households became more stable during the period, and that this effect was attributed to incomes that declined at a lower rate. At any rate, the finance survey revealed the amount that these households spent during the period was relatively tame. 

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