Britons more confident of UK economic outlook in January, Lloyds says
Britons' were significantly more confident about the UK economy's prospects at the start of 2017, even as concerns about the outlook for their disposable income mounted.
A gauge of their confidence in the UK's financial situation leapt higher by five percentage points in January to 40.0%, even as sentiment towards the UK housing market increased by four percentage points to 46.0%, the results of the Lloyds Bank Spending Power Report revealed.
Perceptions of job security also improved, with the corresponding gauge rising by three points to 79.0%.
However, there was a "significant" five percentage point decrease to 19% in those believing that in six months' time they would have more money left over after all household bills and essentials had been paid.
Purchases of petrol and diesel soar
Referencing its own current account data, Lloyds said the year-on-year increase in consumer spend on essentials had halved from 2.0% in December to 1.0% in January.
Spending on drink and food rose by over 1.0%, which was much lower than the approximately 3.0% rise recorded in the month before.
Purchases of petrol and diesel on the other hand continued to soar, rising by almost 10.0% yaer-on-year - the highest rate of growth since Spending Power records began in early 2013.
Commenting on the data, Robin Bulloch, Managing Director, Lloyds Bank said: “There’s little doubt that the performance of the UK economy has been more resilient than expected in the aftermath of the EU referendum vote. Consumer sentiment is reflective of that in early 2017 with a greater confidence in both the country’s financial situation and their personal finances. However, with the economic outlook still uncertain, people remain cautious about their future finances, with the rising cost of essential spending predicted to have a negative impact on their disposable income in the coming months.”