Consumers more confident about own finances despite concerns for UK economy

UK CONSUMERS are concerned about the rate of inflation and the country’s finances but seem more positive when it comes to their own money matters, Lloyds Bank claims.

The latest Lloyds Bank spending power report, based on a poll of more than 2,000 people, found 67 per cent felt pessimistic about the UK economy in August, up from 58 per cent a year before.

Public optimism about inflation has also dropped. With only 37 per cent of respondents positive about current levels, down from 54 per cent in August 2016.

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However, UK consumers are feeling far more optimistic about their personal financial situation than the country’s as a whole, with 63 per cent feeling positive about their personal finances, only slightly down on the 65 per cent a year before.

The proportion of those that believe they will have a higher future disposable income in six months’ time has also increased 20 per cent in August 2016 to 24 per cent this year, while 29 per cent of consumers said they expect to be saving more over the same period, up from 22 per cent 12 months ago.

The proportion intending to pay off more debt has also increased from 18 per cent to 22 per cent over the past year.

“Consumers are feeling significantly more pessimistic about the nation’s finances than they were 12 months ago,” Robin Bulloch, managing director of Lloyds Bank, said.

“People are telling us they’re increasingly worried about higher inflation and are spending more on essential items than last year.

“However, there are encouraging signs that some consumers are more positive about their own finances with a significant increase in those believing they will have a higher disposable income in six months’ time.”

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