Lloyds Bank reported an increase in consumer confidence in October to reach its second highest score since the start of the index, climbing five points to 151.
The continued decline in petrol prices has seen average spending on fuel around 6% lower than this time last year, helping to ease the pressure on budgets and bolster household incomes. While warmer conditions earlier in the year resulted in lower energy usage, which is still helping to keep gas and electricity bills low at around 5.5% lower than this time last year.
Patrick Foley, chief economist at Lloyds Bank, said: “Consumers remain in a positive mood, with the pressure on budgets from essential spending lifting a little. Though risks around the economic outlook have risen somewhat, emerging signs of a modest strengthening in real wage growth should help support the UK recovery.”
Greg Coughlan, director of personal current accounts at Lloyds Bank added: “The improvements we have seen from last month is a positive sign for all consumers, especially in the lead up to Christmas where finances are often stretched. The continued improvement in individuals personal finance situations, shows that consumers are having more confidence in their own finances.”
Read the whole Lloyds Bank Spending Power Report http://www.lloydsbankinggroup.com/Media/Press-Releases/2014/lloyds-bank/consumer-confidence-bounces-back-says-lloyds-bank/