You are here: Home -

Consumer confidence jumped in January

Written by:
Consumers are feeling more positive about both the country’s financial situation and their personal finances, despite ongoing hikes in the cost of essential spending, according to the latest Lloyds Bank spending report.

The consumer survey – conducted in conjunction with Ipsos MORI – found that confidence in the country’s financial situation leapt by 5 percentage points to 40% in January, while sentiment towards the UK housing market increased by 4 percentage points to 46%.

There was also a rise in own job security, up 3 percentage points since December to 79% in January.

However, there was a significant decrease in those believing that, in six months’ time, they will have more money left over after all household bills and essentials have been paid, with confidence among consumers falling from 24% to 19%.

Meanwhile Lloyds Bank’s analysis of its own current account data showed a 1% year-on-year increase in consumers’ essential spending for January, the fifth consecutive month of expenditure rise. However, the increase was lower than the almost 2% rise seen in December 2016.

Food and drink spending, which accounts for around 40% of essential spend, rose by over 1%, continuing a trend of positive growth in groceries spend which started in May 2016.

Spending on petrol and diesel continues to soar, at almost 10% year-on-year in January, the highest rate of growth since Spending Power records began in early 2013.

Robin Bulloch, managing director, Lloyds Bank said: “There’s little doubt that the performance of the UK economy has been more resilient than expected in the aftermath of the EU referendum vote. Consumer sentiment is reflective of that in early 2017 with a greater confidence in both the country’s financial situation and their personal finances.

“However, with the economic outlook still uncertain, people remain cautious about their future finances, with the rising cost of essential spending predicted to have a negative impact on their disposable income in the coming months.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
sad pensioner
Keeping ‘triple lock’ could mean no state pension for millions

The state pension age would need to rise above the life expectancy for men in some of the UK’s most...