“With the combination of a steadily improving jobs market and lower prices for essentials, feeding through to household budgets, a positive mood among consumers is being maintained. As a result, the UK’s economic prospects continue to look bright for 2015, even if political events are set to introduce a little more uncertainty,” said Patrick Foley, chief economist at Lloyds Bank.
The overall spending power index score – which takes into account a range of factors such as prices, incomes and job security – maintained a record high level of 154 in February.
It was buoyed by a third consecutive month of falling prices for essentials, largely driven by a 7.3 per cent year-on-year drop in gas and electricity prices. Fuel prices also helped with a 9.7 per cent year-on-year fall.