Influences on Household Spending: Evidence from the 2012 NMG Consulting Survey

11 Pages Posted: 5 Jan 2013

See all articles by Philip Bunn

Philip Bunn

Bank of England

Jeanne Le Roux

Bank of England

Robert James Johnson

Bank of England - Risk Assessment Division

Michael McLeay

Bank of England - Monetary Assessment and Strategy Division

Date Written: December 12, 2012

Abstract

A number of factors are likely to have restrained household spending growth over the recent past, including weak income growth, tight credit conditions, concerns about debt levels, the fiscal consolidation and uncertainty about future incomes. This article examines the factors affecting spending and saving decisions using the latest survey of households carried out for the Bank of England by NMG Consulting. Real incomes have been squeezed. Concerns about debt levels and tight credit conditions appear to be important factors supporting saving. But many households are also uncertain about their future incomes and have been affected by the fiscal consolidation. Over the next year, households do not expect to change the amount they save significantly, with the same factors that have supported saving recently continuing to be important.

Suggested Citation

Bunn, Philip and Le Roux, Jeanne and Johnson, Robert James and McLeay, Michael, Influences on Household Spending: Evidence from the 2012 NMG Consulting Survey (December 12, 2012). Bank of England Quarterly Bulletin 2012 Q4. Available at SSRN: https://ssrn.com/abstract=2195962

Philip Bunn (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Jeanne Le Roux

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Robert James Johnson

Bank of England - Risk Assessment Division ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Michael McLeay

Bank of England - Monetary Assessment and Strategy Division ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

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