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UK consumers choose saving over spending

12 May 2005
Consumer confidence is once again increasing, but people in the UK are choosing to save rather than spend.

This is the conclusion reached by the new Consumer Market Outlook from Experian, which echoes figures released earlier this week showing that retail sales, particularly on luxury and 'big ticket' items, have slowed.

Senior economist at Experian Addween Sacha said that consumers "remain wary" about spending on such large-scale items, such as washing machines and furniture, and are currently more careful about taking on further credit.

"In fact, many are looking to save rather than spend their income at the moment," Mrs Sacha explained.

"People are more cautious about taking on further credit and a cooler housing market is depressing sales of household goods.

"Overall, we expect slower consumer spending growth, and retailers of durable goods in particular will face a harder year in 2005."

However, as fears of a house price crash recede and the Bank of England decides for the ninth consecutive month to keep interest rates at 4.75 per cent, spending could pick up in the near future.

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