Consumer spending hits fresh lows
July 21, 2009 by admin
Filed under News, News-Loans
Recently released figures have shown that consumer spending in the UK has hit fresh lows, with household spending falling to its lowest level since 1980.
In the first quarter of this year the British economy contracted by over 4 percent compared to the same period last year according to the figures, as an increasing number of households tightened their belts and cut back on their spending.
Figures were released by the Office for National Statistics, which showed how consumer and household spending had fallen to its lowest in nearly three decades as the recession and financial crisis continued.
The report was broken down into sections, and the figures showed that there had been a fall in household spending, exports, and investment. In addition there was a sharp rise in the level of stockpiled unsold goods known as inventories.
One official stated: ‘We remain unconvinced that recent green shoots will translate into a return to decent growth next year.’ Another economist said: ‘These are staggering numbers – savage. The thing we were looking for was a continued sharp decline in inventories, but that actually accelerated.’
There were a number of different areas in which households had cut back on their spending according to the report, and some of these included spending money on housing, household items and goods, a variety of services, and even spending money abroad.
With the country still in the grip of recession and increasing concerns amongst consumers with regards to the security of their jobs the situation could continue to get worse as household income and consumer confidence falls.
An economist who is often optimistic about the economic future, Howard Archer, even stated: ‘Serious obstacles to economic recovery remain.’
Tags: National Statistics, consumer spending, consumer confidence, Office for National Statistics, british economy, office, return, spending money
