(Sharecast News) - UK consumer sentiment slipped in October, with households still feeling the pressure from rising prices and less cash to spend as a result, according to a survey published on Monday.




The S&P Global UK consumer sentiment index fell to 47.4 from 47.8 in September - a mark below 50-point indicates contraction. A reading on labour market sentiment fell to 54.2 from 55.2, while a separate index on spending rose slightly to 41.2 from 41.1.

The household finance index slipped to 47.5 from 48.0, while the index on expected finances in 12 months' time fell to 50.4 from 50.8.

S&P Global Market Intelligence economist Maryam Baluch said "some of the gloom" was lifting from UK households but lower income households were finding finances stretched.

"It's clear the cost of living crisis has not yet been beaten. Although incomes are up, households report lower levels of available cash as high bills eat into the amount of money left to spend. The gloom may be lifting, but that's not to say households don't remain under considerable financial stress, with lower earners reporting particular concerns."

The survey has shown that since the Covid-19 pandemic, the gap between the highest and lowest earning households has widened on average: lower earning households have been struggling more with their finances, while higher earners have generally been faring better, S&P said.

"In the most recent survey, this trend continued with people in the very highest income group reporting that their financial situation improved, while everyone else reported a worsening."

Reporting by Frank Prenesti for Sharecast.com

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