Household spending finally recovers to 2006 levels

HOUSEHOLD SPENDING has returned to levels seen before the economic downturn, official figures show.

Average weekly household spending rose to £554.20 in the financial year ending 2017, with transport being the top-spending category at nearly £80, the Office for National Statistics (ONS) said.

There is also evidence that families are forking out more on package holidays abroad.

Commentators suggested the figures show families largely “shrugged off” any immediate post-Brexit vote jitters.

After adjusting for inflation, weekly household spending has not been this high since the financial year ending 2006, the report said. There is also a £200-a-week spending gap between households across the UK, reflecting varying incomes and costs.

Across the UK, households spent an average of £79.70 a week on transport in the financial year ending 2017 – a “highly significant” increase of £5.40 in real terms when compared with the previous year, the ONS said. Transport includes purchasing vehicles, running costs and services such as public transport and air fares.

Stephen Clarke, policy analyst at the Resolution Foundation, said: “Today’s figures confirm that families largely shrugged off any immediate post-EU referendum jitters and went spending.”

He continued: “More recently, rising prices and squeezed incomes have put the brakes on Britain’s big-spending households.”