Lloyds TSB: Consumers tightening spending

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Lloyds TSB: Consumers tightening spending

Mon 26th Nov 2007

Consumers have tightened their spending this month as increasing numbers struggle to pay their bills, research by Lloyds TSB has shown.

According to the bank's Corporate Markets Consumer Barometer survey for November, almost three-quarters (73 per cent) of consumers felt prices have increased over the last year.

Interest rates are more likely to be higher than the current 5.75 per cent base rate in 12 months time, according to less than half (43 per cent) of the 2,000 consumers surveyed by Lloyds TSB.

The consumer barometer also found that consumer confidence in employment conditions fell by 27 per cent during the month, with demand for higher wages expected to increase, according to Trevor Williams, chief economist at Lloyds TSB Corporate Markets.

"A record number of consumers are feeling the pressure of higher prices and this, together with worsening employment prospects, is clearly having a negative impact on consumer spending," he commented.

Nationwide's Consumer Confidence Index for October revealed the willingness of shoppers to spend their money to be at the lowest level since December 2006.

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