Lloyds Bank

Spending Power Report

18 December 2012

  • Spending power growth fell to -0.1% after inflation in November.
  • Discretionary spending power grew by 2.7%, broadly in line with inflation on non-essentials.
  • However, tuition fees were a significant factor in pushing inflation on non-essential items to 2.7%, implying that average spending power in real terms may mask significant differences between students and non-students.
  • Income growth continues to be weak at 2.6% on a year ago, and -0.3% in real terms.
  • Growth in spending on gas and electricity bills fell back for the seventh consecutive month, while spending growth on automotive fuel continues to rise.
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