Consumer sentiment stays high as essential spend pressure remains steady, says Lloyds Bank
The Lloyds Bank Spending Power Report for April has found essential spending growth has stayed below 1% for the second consecutive month, amid a new survey high of 138 points for consumer confidence since the survey began in November 2010 – a rise of 29 points from this time last year.
Confidence in the UK’s current, and future economic situation has continued to increase, with confidence in the UK’s economic situation seeing the greatest yearly improvement, with an index of 262 points, a 117 point increase from this time last year.
Among categories of essential spending, customers’ average spending on fuel is around 5% lower than a year ago, while spending growth on gas and electricity continues to slow, at around 1% in April compared with around 8% in mid-2013.
Patrick Foley, chief economist at Lloyds Bank, said: “Continuing gains in consumer sentiment mirror the ongoing improvements in the UK economic backdrop. Meanwhile, reduced pressure on consumer wallets from essential spending, strong growth in employment, and looking ahead, a pick-up in wage growth, are likely to boost spending power, improving the capacity of consumers to undertake discretionary spending.”