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The financial position of British households: evidence from the 2011 NMG Consulting survey

Author

Listed:
  • Kishore Kamath

    (Bank of England)

  • Kate Reinold

    (Bank of England)

  • Mette Nielsen

    (Bank of England)

  • Amar Radia

    (Bank of England)

Abstract

Over the past year the recovery in the UK economy appears to have slowed. That weakness in UK demand has been driven by falling consumption, reflecting the challenging environment facing households. This article examines the factors affecting households’ budgets and spending decisions using the latest survey of households carried out for the Bank of England by NMG Consulting in September 2011. The survey suggests that most households had experienced an income squeeze, and credit conditions remained tight. Around half of households reported that they had been affected by, and had responded to, the fiscal consolidation. Reported levels of financial distress had remained elevated but had been contained by the low level of Bank Rate and some forbearance by lenders. Looking ahead, households were uncertain about future incomes and expected to continue to be influenced by the fiscal tightening. Households in aggregate, did not expect to change the amount they saved.

Suggested Citation

  • Kishore Kamath & Kate Reinold & Mette Nielsen & Amar Radia, 2011. "The financial position of British households: evidence from the 2011 NMG Consulting survey," Bank of England Quarterly Bulletin, Bank of England, vol. 51(4), pages 305-318.
    • Handle: RePEc:boe:qbullt:0063
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    References listed on IDEAS

    as
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    3. Kate Reinold, 2011. "Housing equity withdrawal since the financial crisis," Bank of England Quarterly Bulletin, Bank of England, vol. 51(2), pages 127-133.
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    5. Michael Joyce & Matthew Tong & Robert Woods, 2011. "The United Kingdom’s quantitative easing policy: design, operation and impact," Bank of England Quarterly Bulletin, Bank of England, vol. 51(3), pages 200-212.
    6. Tomas Hellebrandt & Silvia Pezzini & Jumana Saleheen & Richard Williams, 2009. "The financial position of British households: evidence from the 2009 NMG survey," Bank of England Quarterly Bulletin, Bank of England, vol. 49(4), pages 274-285.
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    Cited by:

    1. Philip Bunn & Jeanne Le Roux & Robert Johnson & Michael McLeay, 2012. "Influences on household spending: evidence from the 2012 NMG Consulting survey," Bank of England Quarterly Bulletin, Bank of England, vol. 52(4), pages 332-342.
    2. Bryan, Mark L. & Longhi, Simonetta, 2013. "Couples' Labour Supply Responses to Job Loss: Boom and Recession Compared," IZA Discussion Papers 7775, IZA Network @ LISER.
    3. L. Bryan, Mark & Longhi, Simonetta, 2013. "Couples’ labour supply responses to job loss: boom and recession compared," ISER Working Paper Series 2013-20, Institute for Social and Economic Research.
    4. Daniel Garrote & Jimena Llopis & Javier Vallés, 2013. "Los canales del desapalancamiento del sector privado: una comparación internacional," Boletín Económico, Banco de España, issue NOV, pages 69-80, Noviembre.
    5. Michael McLeay & Amar Radia & Ryland Thomas, 2014. "Money creation in the modern economy," Bank of England Quarterly Bulletin, Bank of England, vol. 54(1), pages 14-27.
    6. Bank of England Bank of England, 2012. "The distributional effects of asset purchases," Bank of England Quarterly Bulletin, Bank of England, vol. 52(3), pages 254-266.

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