Household spending has fallen for the first time in nearly four years, according to data from Visa. The stats show that spending in May 2017 was 0.8% down compared to May last year and down 1.8% versus April 2017 as households feel the pinch.
Experts have put the blame on our sluggish economy, which grew by a measly 0.2% in the first quarter of 2017. Slow growth and the devaluing of the pound since the Brexit vote last June, have all added to the problem as our money simply doesn’t go as far as it used to.
And it seems we’re being frugal in all sorts of areas as spending is down across clothing, household goods, transport, and food. Even window shopping as suffered as the number of people visiting shopping centres, fell by 1%. However, British homes, aren’t quite cutting the budget entirely when it comes to entertainment – we’re still spending money on trips to the movies and eating out – but just being a lot more cautious about it.
Visa’s figures are usually a good indicator of things to come as official figures are expected later this month. Experts have also predicted that official data will show that wages have dropped in real terms as the cost of living has increased and inflation remains at 2.7%.
So, it feels like the good times are well and truly over as partners in misery – doom and gloom – take over. But whilst watching the pennies is ever so dull, it is good in making us value where we put our pounds. Which is why you should always make sure you get the most for your money and compare great deals on those household items that you just can’t live without, like broadband, phone and TV, as well as your gas and electricity.
And let’s not forget that in an unpredictable world, having a safety net when things don’t go according to plan, can only be a good thing. So, safeguard your future and don’t compromise on the important stuff like your car, home, pet and travel insurance – just comparethemarket.com.