Amid an increasingly likely no-deal Brexit, British workers are turning more cautious about making big ticket purchases. According to data released by IHS Markit, the Household Finance Index in UK has slipped to a three-month low in August at 43.7, down from 44.3 in July. This is the steepest decline seen in this index in nearly two years.

Financial markets are worried that leaving the EU without a deal could push the British economy into recession. Even as Brexit uncertainties continue to grow, the ongoing US-China trade war have also had a simultaneous impact on the British economy, with British economic output contracting in Q2 2019.

Record employment and earnings growth have so far stemmed any potential impact of domestic demand on the economy so far. However, with the Brexit deadline fast approaching, this looks set to change. The survey reveals that expectations for a rate cut by the BOE have gone up, with 23% households in August anticipating a rate cut, up from 16% in July.