Essential spending are now taking large part of Britons’ pay

Time to read
less than
1 minute
Read so far

Essential spending are now taking large part of Britons’ pay

August 30, 2018 - 09:45
Posted in:
0 comments

Essential spending are now taking large part of Britons’ monthly pay, Bloomberg reports. According to the survey of Nationwide Building Society, 41% of citizens have less that 6,60 pounds on hands for daily expenditures after paying all bills.

Photo © Pedro Figueras, CC0 1.0

Essential spending are now taking large part of Britons’ monthly pay, Bloomberg reports. According to the survey of Nationwide Building Society, 41% of citizens have less that 6,60 pounds on hands for daily expenditures after paying all bills. Mortgage, groceries and fuel spending grew 6% in past year and now account for 80% of average salary in the UK.

Report notes that pressure on UK’s consumers increased after Brexit referendum in 2016, which caused decline in pound and acceleration of inflation. Bank of England raised interest rates to the highest level since 2009 on August 2 to limit price growth.

Level of consumer confidence is also declining in August. Optimism falls amid weakening housing market. Expectations of consumers in regards to property values in next 12 months fell to the lowest level since July 2017.

Despite the current situation, Britons increased restaurant spending by 10% compared with last year. It probably was caused by football team participating in semi-finals of World Cup.

Among important spending that Britons will unlikely exclude, the leading place is taken by Wi-Fi, followed by clubs membership.