Consumer spending stable in Q2

UK Finance has today published its Household Finance Review Q2 2022, which explores trends in household spending, saving and borrowing through the second quarter of 2022.

Consumer spending remained stable in Q2 and house purchase activity returned to pre-Covid-19 trends, but data indicates that there are tough times ahead. Household savings remained stable but did not grow, reflecting higher costs constraining people’s ability to save money. For households looking to refinance their mortgage this year, increased inflation and interest rates mean that they would see a substantial reduction to their disposable income.

Eric Leenders, Managing Director of Personal Finance, UK Finance, said “Household spending was stable in the spring, with increased personal loan borrowing. We understand that some consumers are making larger purchases earlier than planned to stay ahead of inflation.”

“As we head into the autumn, the pressure on household finances will increase and we anticipate a drop in consumer spending and house-buying activity. Anyone struggling with their finances should get in touch with their lender as soon as possible to discuss support available to them.”