Indicator of sustainable economic recovery: data show increase in non-essential household spending
– 9.4% year-on-year increase in UK household discretionary spending during Q2 2014 is largest rise since 2006
– Discretionary spending rising as a proportion of total household spending and total disposable income
– Increase in discretionary spending financed by income from property and not from wages and salaries
Robert Macnab, director of research at Verum, said: “With signs that global economic growth is slowing, particularly in China and the eurozone, a higher level of household discretionary spending will help to cushion the UK economy somewhat from a downturn in global trade, particularly from a reduction in UK exports to the eurozone countries.
“The areas of household spending that have benefitted from the increase in household discretionary spending have been alcoholic drinks, household appliances, tools and equipment, purchase of motor vehicles, audio-visual equipment, durables for outdoor recreation, gardening, games and toys, sport and camping equipment, restaurants and cafes, accommodation away from home, jewellery, life insurance and financial services.”
