Friday 25th April 2008
Figures compiled by Alliance Trust Research Centre indicate a likely "cooling" in household expenditure over the next year, it has been claimed.
The organisations financial reality index takes a number of different economic elements into account in order to determine how closely the amount being spent in the UK reflects the theoretical health of the economy.
In the most recent report, household expenditure has dropped, indicating that more Britons are realising the "financial reality" is less favourable than in previous years.
Shona Dobbie, head of Alliance Trust Research Centre, says: "There are millions of homeowners who are coming to the end of cheap fixed-rate mortgage deals."
"This will have a huge impact on peoples finances so we expect to see a further decline in household expenditure," she adds.
The decline is linked to a second quarter of declining equity values and cooling house price inflation.
Meanwhile, research from the organisation shows the elderly are particularly hard hit, facing increases in both food and energy costs which are higher than any other age group.
©
Request FREE brochures from leading Real Estate Agents on properties abroad.
