Consumer spending increases at slower rate in Q3

Thursday, 23 December 2010 12:00

The growth of consumer spending slowed down in the third quarter of the year compared with the preceding three months, the Office for National Statistics (ONS) has said.

Household expenditure rose by 0.3 per cent in volume terms between July and September. At current prices, it had climbed by one per cent.

The figures were down from growth of 0.8 per cent by volume and 1.9 per cent at current prices between April and June.

Nevertheless, consumer spending was two per cent higher in volume compared with the third quarter of last year.

The ONS noted the main areas for annual growth were recreation and culture and food and non-alcoholic drink, where expenditure rose by 2.5 per cent and 1.6 per cent respectively.

A 1.3 per cent drop in transport spending and a 0.8 per cent decline in housing outlay helped to offset these increases.

The figures come after the latest research from Nationwide indicated consumer confidence had dropped to its lowest point since March 2009 in November.

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