Bloomberg
UK consumers spent significantly more on debit cards in the first two weeks of January but a mounting cost-of-living crisis is expected to take a heavy toll in 2022.
That’s according to Lloyds Bank, which found that spending rises 27% from the same period of 2020, before the pandemic hit, with 42% more splashed out at restaurants. The lender said the pandemic had encouraged people to use their cards more for every day spending.
Still, with all UK nations under work-from-home guidance, spending on commuting fell 13%, though that was almost treble the level in 2021 when Britain was in full lockdown. Restrictions to combat the Omicron variant of Covid-19 were relatively loose and are now being lifted.
“While the increase in spending could be considered a sign of consumers ongoing resiliency, rising inflation and concerns around the cost of living could leave a lasting impression on household finances,†said Gabby Collins, payments director at Lloyds. “Spending power is likely to continue to be dictated by the impact of the pandemic on the wider economy.â€