Consumer spending falls by 16% since the latest lifting of restrictions, according to Yolt’s user data
User data from Yolt*, the award-winning smart money app, reveals consumers have spent on average 16% less since lockdown restrictions lifted on the 12th of April, as economic uncertainty continues, and people remain cautious about their spending as they come out of lockdown.
However, people spent 9% more on eating out in the last two weeks of May, following the easing of restrictions on the 17th, when compared to the same period in March.
In contrast, grocery spending decreased by 7%, as consumers started to shop less for home and started eating out.
Takeaway spending also decreased in that period by 5%, possibly as a result of people slowly returning to eating out instead of ordering in, given the easing of restrictions.
Shopping is an area that has seen a small uptick (4%) in the average amount people have spent since non-essential retail opened on 12th April, when compared to the weeks in lockdown before.
Despite being able to leave the house, and an 18% rise in the number of transactions associated with transport, the amount spent on transport decreased by 19%, indicating that people might be travelling more but making shorter, more local trips.
Lockdown saw many increase their savings, however as restrictions lift and the economy opens up, people have been saving more frequently but putting less aside. The amount put into savings fell by 28%, and overall deposits increased by 17%.
Pauline van Brakel, Chief Product Officer at Yolt says “The past year of lockdown restrictions has undoubtedly had an impact on our food shopping, dining, and savings habits, and with each change we are likely to see more shifts. Our data suggests that consumers are looking to spend smarter and reduce their outgoings in light of broader economic uncertainty. Even as lockdown eases, we anticipate people will want to continue to spend cautiously whilst making the most of their new freedoms.
“The financial impact of the pandemic has been far reaching and effected some people more negatively than others. As we move towards returning to normal it has never been more important for people to be smart with their money, and to strive to find new ways of balancing spending and saving. Simple steps like reviewing your regular expenses such as energy bills, grocery shopping and subscription services can be a good way to highlight areas where you could cut back on spending. At Yolt, our recently launched evolution of the app is designed to help you manage your finances and keep a close eye on both your spending behaviours and your savings habits.”
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