Fewer households ‘have money to spend’
The number of households with money left over after paying monthly expenses has declined in the last three years, according to new research.
A study by Legal & General found that an increasing proportion of people do not have enough money to spend on non-essential items or to put into savings accounts after paying utility bills and debts.
However, the research also found that the "mood to save" has risen for the third consecutive October, while it predicts this trend will continue as a result of the recent interest rate increase.
Claire Stracey, director of customer marketing at Legal & General, said: "Clearly if some households are finding their finances under pressure and the current trend is to save rather than spend this could have an impact on spending."
Ms Stracey added that the firm would be closely examining what people plan to spend in the run-up to Christmas.
Earlier this month, the Bank of England increased interest rates to five per cent – the highest level since September 2001.
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