Summer holiday spending, rising housing costs, and Britain’s employment situation have dented people’s financial confidence, according to a survey released today.
Lloyds Bank’s spending power index came off its record high in July, falling three points to 161. The biggest drag on the figure was sentiment toward the housing market. Various house price measures including those from Halifax, Nationwide and Rightmove all show prices climbing at a faster pace than incomes.
Despite the moderation in the index, Lloyds Bank said households were spending less on essentials due to falling prices.
“The summer can be an expensive time of the year with people putting money towards paying off holidays and many families facing significant sums to get their children ready to go back to school in the next few weeks,” said Claire Garrod, Lloyds Bank’s head of personal current accounts.