Lloyds Bank

Spending Power Report

21 May 2012

  • The squeeze on consumers’ spending power continued in April, falling 0.9% after inflation. On average, this equates to almost £100 less than a year ago to spend on non-essential items.
  • Income growth slowed to its weakest level since February 2011 with consumers’ incomes growing by only 2.2% in the year to April.
  • Negativity towards the UK’s financial situation increased in April with 51% believing it to be ‘not at all good’.
  • 86% of consumers have noticed an increase in the cost of essentials and everyday spending compared to 12 months ago – an increase of 13 percentage points from March.
  • 67% of people believe they are paying more on petrol and diesel compared to a year earlier, while 60% are spending more on household groceries.
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