Spending power falls by £100 in the UK
The UK continues to tighten its collective financial belt as reports confirm that consumer spending power fell 0.9 per cent after inflation in April, compared to April last year, which amounts to £100 a year less to spend on non-essentials, reveals payday loan company Cash Until Friday (http://www.cashuntilfriday.co.uk/).
News of falling consumer spending power came from the Lloyds TSB Spending Power Report, which also stated that UK incomes have grown at their weakest rate for more than a year, growing by only 2.2 per cent which is down from 2.4 per cent the previous month. It’s little wonder that so many more people are turning to payday loans from companies such as Cash Until Friday – the report shows that there is even more negativity about the UK economy, with over half of the people surveyed believing it to be “not at all good”.
Speaking to the Telegraph, the chief economist at Lloyds TSB Patrick Foley said “Household finances are still under real pressure despite the significant falls in inflation we have seen over the past seven months. Although unemployment has been broadly stable, wage growth has eased and so incomes are growing well below their long term average. Even though we expect to see further falls in inflation, the weakness in the broader economy is likely to mean that consumers aren’t going to feel any better in the near future”.
Jatin Patel, Lloyds TSB director of current accounts, said “There was little respite for consumers in April and it is clear that a growing number are feeling concerned about the state of the UK’s economic situation. This will not have been aided by news suggesting that the UK has entered into a double dip recession, while continued weak income growth and rising prices act as a very tangible drag on sentiment”.
Whatever way you look at it, it’s tough times for the UK population. The “weak income growth” and “rising prices” that Patel from Lloyds TSB speaks of are resulting in a very real gap between the day in the month that money runs out and pay day for some. In situations such as those, or when unforeseen costs arise, people are turning to the short-term solution of quick pay day loans, which provide cash when people need it without getting them into long-term debt in such uncertain times. To find out more about this finance option go to the Cash Until Friday website at http://www.cashuntilfriday.co.uk/.
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