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UK households recover from Brexit hit to confidence on finances, Markit says

Published 17/08/2016, 10:11
© Reuters. A woman shops at a Sainsbury's store in London, Britain

LONDON (Reuters) - British households have recovered from a loss of confidence about their finances after the country voted to leave the European Union, a survey showed on Wednesday, another sign consumers are taking the referendum result in their stride.

Financial data firm Markit said its Household Finance Index for August reversed July's plunge and edged above its level in June at 44.9, its highest reading in four months.

"Concerns seem to have eased in line with the removal of some of the immediate political uncertainty arising from the shock referendum result, combined with a strong monetary policy response from the Bank of England," Markit senior economist Jack Kennedy said in a statement.

Concern about job security eased in August after reaching its highest level in three years in July, although income from employment was the weakest in three months, the survey showed.

The online survey of about 1,500 people was conducted by polling firm Ipsos MORI between Aug 8-12, after the Bank of England cut interest rates to 0.25 percent and announced other measures to cushion Britain's economy from the Brexit shock.

© Reuters. A woman shops at a Sainsbury's store in London, Britain

Economists are waiting for official retail sales data on Thursday to get a sense of whether spending by British consumers will help offset the drag of lower investment by companies following the Brexit vote.

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