LONDON (ShareCast) - (ShareCast News) - The number of people feeling positive about their personal finances decreased last month due to rising prices and slow wage growth, according to the latest Lloyds Bank Spending Power Report.


Only 63% of consumers reported a positive assessment of their financial situation in May versus 65% in April, reflecting a drop of 2pp. That figure had hit a 12-month high of 68% in March, according to the independent consumer research conducted in conjunction with Ipsos MORI.

The continuous rise of CPI from an annual growth rate of 2.7% in April to 2.9% in May - the highest in nearly four years - led 62% of respondents to say they were pessimistic about curent levels of inflation, versus 59% in the previous month and just 40% in May 2016.

Fewer respondents also said they were left with any money after covering all monthly outgoings.

That proportion fell from 84% in April to 80% in May.

On the other hand, Lloyds Bank's analysis of its own accounts reveald annual growth in essential spending was about 2% in May.

That was slightly less than roughly 2.5% in April, but nevertheless marked a ninth consecutive month of increases.

Spending on food and drink made up 40% of essential spending and was ahead by 2.5% in May versus a rise of 2.0% in April.

Robin Bulloch, Managing Director, Lloyds Bank, said: " [...] while recent falls in forecourt petrol prices may provide some relief, it's the rising cost of food and drink which continues to really stretch the purse strings.

"With little change in these broad trends likely in the short term, households should prepare for a further squeeze on their spending power in the months ahead."

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE