By Maximilian Clarke

UK household spending has flattened, following three consecutive quarters of decline, the Office for National Statistics confirm.

Comprising 60% of the GDP, household expenditure is a key economic indicator and today’s figures offer some respite to retailers amidst a longer-term pattern of lowered spending.

The volume of expenditure on goods and services (seasonally adjusted) has remained unchanged between Q2 and Q3 2011 following 3 quarters of negative growth. This means that the volume of household expenditure in Q3 2011 is 1.0 per cent below the level of household spending in Q3 2010.

The volume measure of ‘Housing’ expenditure (which includes expenditure on actual and implied rentals, gas and electricity) grew by £389m. This accounted for almost 0.18 per cent of the overall growth. Within ‘Housing’ expenditure, the largest increase was recorded in ‘Electricity, gas and other fuels’, which showed quarter on quarter growth of 4.9 per cent.

The volume measure of ‘Housing’ expenditure (which includes expenditure on actual and implied rentals, gas and electricity) grew by £389m. This accounted for almost 0.18 per cent of the overall growth. Within ‘Housing’ expenditure, the largest increase was recorded in ‘Electricity, gas and other fuels’, which showed quarter on quarter growth of 4.9 per cent.


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