Current account spending to continue, says one expert

According to one financial expert who specialises in tracking spends in UK consumer tracking, next year will bring a continuation of spending from consumer current accounts and other related financial products.

In addition to current account spending, spending on related items such as credit cards is expected to continue as well next year according to Lovemoney’com’s consumer finance head Ed Bowsher. Mr Bowsher predicts that the current economic landscape will fail to significantly  influence the propensity of consumers to outlay funds in the coming year.  which may also come from savings accounts – in

Stating that some consumers may even dip into their savings accounts to continue with their spending habits, Mr Bowsher commented that despite the impact of such occurrences as VAT rises, spending cuts, and job losses, but a great very many people will carry on with their spending as long as interest rates remain at their currently low levels.

The Consumer Price Index, one commonly figure used to determine  the rate of inflation for the UK, has been holding steady at 3.1 per cent for several months.  As a result many savers feel that putting their cash aside in a savings account with a rate of return lower than the CPI is futile as inflation will simply erode whatever interest they may earn on their deposits.

However, the finance expert did add that consumers may prove to have a likelihood to add some resiliency in regards to their spending in the coming months.

Mr Bowsher’s comments come hot on the heels off of a report published by accountancy network BDO on the 8th of November.  The report made predictions that, over the next 12 months, consumers will not dramatically alter the amount they have hitherto been spending.

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