Lloyds TSB’s latest Spending Power Report suggests that UK consumers are continuing to feel squeezed, despite recent falls in inflation.
The report says that the number of people saying that they spend at least three quarters of their income on bills and essentials rose to 46% in February, up 3% from January.
Spending on essentials is growing at its highest rate in almost two years. The largest increases have been on water and gas and electricity.
Some are looking at borrowing as a solution. Lloyds TSB say that consumer research has found that of those who are open to borrowing, the highest proportion are those who state they don’t have enough to meet their monthly outgoings.
Source: Credit Action – April 2012 edition