Essential item spending grows as consumers buy more food, drink and petrol
Essential item spending growth was up for the first time in nearly two years last month, new figures show.
Lloyds’ essential spending measure leapt half a percentage point to 0.2 per cent last month.
The figure, in today’s Lloyds Bank Spending Power Report, was boosted by continued growth in food and drink expenditure.
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Grocery spending rose for the fifth successive month, from 0.3 per cent in August to 0.7 per cent.
Year-on-year spending on fuel, meanwhile, jumped up from a 0.5 per cent fall in August to a 1.5 per cent growth. This was the first growth recorded in petrol and diesel spend in nearly three years.
“With a spending squeeze on the horizon, consumers need to ready themselves for future pressure on household budgets,” said Lloyds Bank managing director Robin Bulloch.
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“Whilst those on lower incomes may be reporting increased confidence in their personal finances over recent months, it is they who will likely feel the biggest impact from rising prices.”
The Lloyds Bank consumer poll, meanwhile, shows nearly a quarter (23 per cent) of those quizzed feel they will have more disposable income in six months’ time, up from 20 per cent in August.