According to the report from IHS Markit, the seasonally adjusted UK Household Finance Index (HFI) - which measures households' overall perceptions of financial wellbeing - dropped sharply in March to 42.5, from 47.6 in February, to signal an accelerated deterioration in the financial health of UK households. Moreover, the index reached its lowest point since May 2019, contrasting with February's survey high.

Looking ahead, UK households expect financial wellbeing to decline over the next 12 months. Again, this was a marked difference from the positive outlook recorded in the previous month.

There were notable developments in workplace-related data during the March survey. UK households reported their most pessimistic outlook towards job security for over eight years. The most downbeat UK households were those employed in media/culture/entertainment, followed by the manufacturing sector.

Workplace activity declined at the strongest pace since April 2009, according to surveyed UK households. Mirroring the trend in job security perceptions, those employed at entertainment and manufacturing firms observed the fastest decrease in activity. Virtually no growth in incomes from employment was also registered during March, while appetites for major purchases fell at a substantial rate that was the fastest since December 2012.