Q2 could see consumer spending surge

Brits have amassed over £245bn in savings during lockdown, with 25% of that expected to be spent immediately or soon after lockdown ends, a new analysis suggests.

Why it matters

Average household savings have reached £4,808, so there is significant purchase potential across the UK. A survey by media company Future found almost half (45%) of all respondents have already started to research their planned purchases, with 57% of spend happening between April and June. 

What will the money go on?

• More than three-quarters (76%) of post-lockdown purchases will be in some way related to passions or hobbies, such as cycling holidays, attending a football match, and investing in new equipment for training.
• Spending on holidays and travelling (53%) and going to pubs and restaurants (42%) featured highest. 
• Consumers will also continue to spend on items popular during lockdown, including home decoration (11%), garden products (10%), and personal and home technology (10% and 9% respectively).

The business view

A new DMA survey (March 2021) reported the majority of businesses (70%) are still being negatively impacted by the pandemic, but it also found signs of recovery: businesses reported revenues are down by just under a quarter (compared to almost half in May 2020) and were forecasting modest revenue growth (+5.9%) over the next 12 months. 

Sourced from Future plc, DMA