LONDON (Reuters) - British households have seen no improvement to their incomes from work this month, according to a survey that underlined the Bank of England's decision last week to slash its forecast for wage growth this year.
Wednesday's monthly Household Finance Index, compiled by financial data firm Markit, edged up in August to 42.2 from 42.0 in July.
Readings below 50 denote pessimism about household finances, as has been the case since the index started in early 2009 during the nadir of Britain's worst post-war recession.
While the survey of 1,500 Britons showed workplace activity rising this month, Markit said income from employment was unchanged for both public and private sector employees.
Last week the BoE halved its forecast for pay growth and said higher borrowing costs hinged largely on an improved outlook for wages.
"Households reported stagnant pay levels in August, resulting in the greatest pressure on cash available to spend for six months, alongside further pessimism about the outlook for household finances over the year ahead," Tim Moore, senior economist at Markit, said.
Minutes from the August meeting of the BoE's Monetary Policy Committee are also due on Wednesday and will be scrutinised for comments on the outlook for pay, among other things.
But wages aside, the survey still pointed to an improving labour market, with job insecurity falling to a fresh post-crisis low.
"Subdued inflationary pressure and improving economic conditions are supporting financial wellbeing this summer," said Moore.
(Reporting by Andy Bruce; Editing by Alison Williams)