Brits spend 42% less on non-essentials last month

The report explains how essential and non-essential spending across the UK changed amid the lockdown

spending

Brits spend 42% less on non-essentials last month. Source: shutterstock.com

Data from LloydsBank revealed that spending on non-essential items was down 42% in April, compared to last year.

The fact that many establishments still closed cause a drop in spending on holidays (94%) and in restaurants (75%), accounted for 11% and 9%, respectively.

Although, the survey revealed that the amount of money put towards charitable causes raised 4% in April compared to last year. It shows significant support to the most vulnerable in society during these uncertain times.

As to the UK’s essential spending in April, it fell by 6% compared to 2019. According to information, this decrease was caused by a drop in money spent on travel.

Along with that, spend on health services suffered down 55% this month when compared to a year earlier.

Nevertheless, supermarkets and groceries continued to gain strength as people were preparing for longer periods at home. This way, spending increased 18% year on year in March and April.

The heavy falls in total spending seen in April – particularly in areas such as holidays and commuting - were expected following the guidance from the UK Government to ‘Stay at Home’. However, the eventual impact on people’s finances is going to be harder to predict, with many experiencing drastic changes to their financial situation due to the pandemic
Gabby Collins, Head of Payments at Lloyds Bank

We’ve reported that US retail sales faced an 8.7% month-on-month drop, followed by an 11% fall in April. The report found that March saw the biggest drop in retail sales since records began, despite a lot of stores were open.

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