Fuel Prices Squeeze Family Budgets

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Fuel Prices Squeeze Family Budgets

May 4, 2012

Vehicle fuel spending rose by a third in the last week of March compared to the previous week, according to a "Spending Power" report produced by Lloyds TSB.

It is believed that the increase in spending on fuel is due to the UK Government warning car insurance holders of potential strike action.

However, the report also revealed a number of other interesting facts with over 60% of drivers claiming that they are spending more on petrol and diesel than they were a year ago.

According to the survey, overall consumers spending power reached it's lowest level since February last year, with consumers having £113 less to spend on non-essential items over the course of the year.

Commenting on the outcome of the survey, the Chief Economist for Lloyds TSB, Patrick Foley, stated that in spite of expectations at the start of the year, the squeeze on consumers is not yet easing.

He added:

"The pace of economic recovery is thus likely to remain very weak over the next few months at least, with subsequent improvement dependent on a stabilisation in living costs and impetus for growth from outside the consumer sector, particularly exports."

Source: http://www.dailymail.co.uk/money/news/article-2133816/Consumer-squeeze-families-face-biggest-fall-spending-power-year.html