UK consumer spending stays stable in second quarter

Consumer spending remained stable in the second quarter and house purchase activity returned to pre-Covid-19 trends.

Data does indicate that there are tough times ahead, according to UK Finance’s latest Household Finance Review, produced in collaboration with Accenture.

Total spending on credit and debit cards was up slightly in the second quarter at over £75bn (€85.5bn) from around £72bn (€82bn) in the first quarter. This is likely due in part to higher prices driving up average spend, including more expensive petrol and food. However, the volume of transactions also increased, particularly in the travel sector.

In addition, borrowing via personal loans, generally used for larger purchases, increased. With inflation forecast to rise, it is possible that some borrowing has supported earlier-than-planned purchases, locking in today’s prices before they increase.

Household savings built up through the pandemic largely remained stable but did not grow, reflecting higher costs constraining people’s ability to save money. 

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