A new report from Lloyds, the British bank, shows that UK consumers are deleveraging, and now have 3.3% more spending power then last year, according to The Telegraph. This is a product of consumers paying down debt, and is made in spite of rising food and energy prices.But what’s worrying is that consumer confidence in the UK is actually getting worse.
From The Telegraph:
However, a separate survey by Lloyds of more than 2,000 members of the public found that consumer confidence had actually fallen. Nearly half of Britons currently say “money is tight”, compared with 43pc in November, while only 13pc think they live comfortably versus 17pc six months ago.
So while UK consumers may be paying down debt, they’re actually more worried about their economic situation than before, which will limit their ability to spend. While retail sales were down sharply amid austerity measures at the start of 2011, they have since risen slightly ahead of expectations.