Households 'under Real Pressure' As Essential Spending Jumps

[interestrateripoff]

http://www.telegraph.co.uk/finance/economics/9151895/Households-under-real-pressure-as-essential-spending-jumps.html

Households remain “under real pressure” across the UK with consumer spending on essentials growing at its highest rate in almost two years, according to the Lloyds TSB Spending Power report.

Consumers continued to be squeezed in February, with 46pc of people putting at least three-quarters of their income towards bills and other essentials.

Spending on essentials grew 6pc year on year in February, driven by high utility bills, as water bills increased by 15.9pc and gas and electricity spending went up 10.5pc annually.

Patrick Foley, chief economist at Lloyds TSB, said: “Households remain under real pressure. Any improvement in this situation will depend on lower inflation on essentials as income growth is likely to remain weak in the short term.

“We would expect households to start seeing the benefit of lower inflation in the next few months, assuming oil prices don’t continue to rise sharply, and with an improvement in consumer sentiment and spending.”

No mention of either over priced houses or inflated rent.

We won't have lower inflation it will still be going up!

Edited March 19, 2012 by interestrateripoff

[rantnrave]

When is this going to feed through to lower house prices? Shirely this is a case of 'when' not 'if'?

[moonriver]

From the article...

“job security” is at its highest level for almost two years".

and.... "the economy has performed better than many expected and the threat of a double-dip recession seems to have diminished.”

That sounds like a bit of wishful thinking to me.

[JustAnotherProle]

When is this going to feed through to lower house prices? Shirely this is a case of 'when' not 'if'?

It won't, you may have noticed that house prices are static or rising, they don't ever "go down", this is UK Plc, low housing costs are for other countries, even if a mass plague hit the world and 90% of the UK died off, it will still be "business as usual" for estate agents.

[Timak]

From the article...

“job security” is at its highest level for almost two years".

and.... "the economy has performed better than many expected and the threat of a double-dip recession seems to have diminished.”

That sounds like a bit of wishful thinking to me.

The economy is doing great, it's just the people who are doing badly.

[JustAnotherProle]

'People are using the 'Great Die Off' as an opportunity to move up the property ladder. This is creating a lot of competition for the very best places, some going to sealed bids, and this fierce competition is, in turn, trickling down, dragging up prices across the board. In addition, the new money being fed into the market through what can only be described as an 'early, unexpected inheritance bonanza' is simply adding fuel to the conflagration. We are simply rushed off our feet.'

Genius. You can imagine them gleefully waiting for the next Home Office Death Figures figures so they can ramp up the prices even more with all that pent up inheritance cash "and thriving undertakers with huge amounts of disposable cash desperate to find a home in bricks and mortar".

[wonderpup]

“job security” is at its highest level for almost two years".

I thought making people easy to sack was a keystone of economic recovery? Is it to much to ask that the bullshite at least be consistent?

If high job security is deemed a positive for the economy- then the cunning wheeze of making people easier to discard than toilet paper might not be such a good idea? Or was that last weeks idea?

Edited March 19, 2012 by wonderpup

[@contradevian]

Genius. You can imagine them gleefully waiting for the next Home Office Death Figures figures so they can ramp up the prices even more with all that pent up inheritance cash "and thriving undertakers with huge amounts of disposable cash desperate to find a home in bricks and mortar".

Well you would get the few thousand Brits left, hoarding all the land. I'd grab all of Norfolk personally. Its me pension innit!