£12.9bn shift to ‘isolation economy’

The “isolation economy” as people have remained at home has triggered a shift in consumer spending habits equating to £12.9 billion annually, analysis has found.

This change is largely due to UK adults’ increased spending on four key “at home” sectors – groceries, alcohol, entertainment and hobbies and crafts – during the lockdown, according to the research from Legal & General.

Despite the £12.9bn shift in where money is being spent, UK households have been spending less money generally, equating to a fall in expenditure of £215bn per year, the research found.