# UK expenditure sees its biggest increase in a decade, while income remains stagnant   Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2018-05-23 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Rise in UK Household Expenditure: New Data Analysis Meta Description: New data from Hitachi Personal Finance demonstrates significant growth in UK household expenditure over the past decade, outpacing stagnant income levels. Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/uk-expenditure-sees-its-biggest-increase-in-a-decade-while-income-remains-stagnanthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd230518-5-1736842699342-compressed.png) - Hitachi Personal Finance analyses new data that shows that household expenditure at its highest in a decade - The UK’s average weekly income has shown no growth in the past year \[3\], while household expenditure grew by 3.9% \[1\] - Clothing and footwear saw the [biggest rise in expenditure over the previous ten years](https://www.financedigest.com/uk-nurses-begin-biggest-strike-ballot-in-more-than-100-years.html "UK nurses begin biggest strike ballot in more than 100 years") (25%) \[2\] With a new income report released by the ONS this week, new supporting analysis from personal loan provider,Hitachi Personal Finance, reveals that average weekly income is continuing to fall short of expenditure, which has seen continuous growth for the previous three years. The data shows that at the end of 2017, [household expenditure](https://www.financedigest.com/increasing-household-expenditure-on-pet-care-to-amplify-demand-of-dog-bathing-systems-market-fact-mr-report.html "Increasing Household Expenditure on Pet Care to Amplify Demand of Dog Bathing Systems Market: Fact.MR Report") was 3.9% higher than the previous year, meaning British residents had gone from spending £533 per week in 2016, to £554 per week in 2017 on their everyday needs, from rent and bills, to food and clothing \[1\]. This is the biggest increase in the [cost of household](https://www.financedigest.com/factbox-europes-efforts-to-shield-households-from-soaring-energy-costs.html "Factbox-Europe’s efforts to shield households from soaring energy costs") expenditure in ten years. [Analysis also showed that the individual average](https://www.financedigest.com/sports-nutrition-market-share-revenue-and-average-worth-by-makers-shared-in-an-exceedingly-latest-analysis-report.html "Sports Nutrition Market SHARE, REVENUE, AND AVERAGE WORTH BY MAKERS SHARED IN AN EXCEEDINGLY LATEST ANALYSIS REPORT") weekly expenditure in 2017 was 3.4% higher than 2016’s figures (£226.20 a week compared to £233.80), a difference of £7.60. Again, this is the biggest increase in the past decade. The UK’s average [weekly household expenditure has continually increased since](https://www.financedigest.com/dollar-steadies-near-16-week-low-yuan-set-for-biggest-weekly-gain-since-2005.html "Dollar steadies near 16-week low, yuan set for biggest weekly gain since 2005") 2014 and has seen a 1.4% overall increase in the last ten years, from spending £230.50 in 2007, to £233.80 in 2017. However, Hitachi revealed that average weekly income has remained stagnant, or even decreased, every [month since](https://www.financedigest.com/dollar-on-track-for-best-month-since-2015.html "Dollar on track for best month since 2015") December 2016. What’s more, the average weekly income in March 2008 was at £503, with new figures released this week showing a 2.8% [drop](https://www.financedigest.com/london-stocks-recover-set-for-weekly-drop-as-slowdown-inflation-fears-linger.html "London stocks recover; set for weekly drop as slowdown, inflation fears linger") to £489 per week. Hitachi’s ‘History of Household Expenditure’ analysis compared the nation’s spending habits, versus trends in income. The figures showed that average weekly income showed no movement in March 2016 compared to March 2017, which has [continued into 2018 with Average Weekly Earnings in March remaining](https://www.financedigest.com/skin-lightening-products-remain-sought-after-among-women-who-continue-to-account-for-80-of-sales-study.html "Skin Lightening Products Remain Sought-after among Women, who Continue to Account for 80% of Sales: Study") at £489. The categories that have [seen the largest increase in expenditure over the previous decade are clothing and footwear, increasing by 27% from £19.80 – £25.10, along with recreation and culture, which has seen a 22% increase from £60.20 – £73.50 per week](https://www.financedigest.com/hungary-cenbank-seen-hiking-100-bps-to-11-75-next-week-as-inflation-surges.html "Hungary cenbank seen hiking 100 bps to 11.75% next week as inflation surges"). However, the nation hasn’t been splashing the cash in every department, with education (-61%) and alcoholic drinks and tobacco (-30%) seeing a significant drop in expenditure. The [top five growth](https://www.financedigest.com/computer-assisted-anesthesia-systems-market-industry-analysis-opportunities-technology-demand-top-players-and-growth-forecast-2027.html "Computer Assisted Anesthesia Systems Market Industry Analysis, Opportunities, Technology, Demand, Top Players and Growth Forecast 2027") areas for household expenditure since 2007 are: 1. Clothing and footwear – 27% increase 2. Recreation and culture – 22% increase 3. Communication – 18% increase 4. Household Goods and Services –  8% increase 5. Miscellaneous goods and services ( [personal care and products](https://www.financedigest.com/demand-from-personal-care-and-cosmetic-products-will-boost-vegan-wax-market-sales.html "Demand From Personal Care And Cosmetic Products Will Boost Vegan Wax Market Sales"), accessories, childcare products and services) – 2% increase Vincent Reboul, Managing Director at Hitachi Personal Finance, commented: “We wanted to carry out this analysis to get a holistic view of what [consumer spending](https://www.financedigest.com/as-consumer-spending-increases-convenience-and-security-have-never-been-more-important.html "As consumer spending increases, convenience and security have never been more important") looks like across the UK, compared to income, and how this has changed over the previous decade. We’ve published the full findings of the report on our website, which uses ONS insight alongside our own data, so that people can see where the main areas of growth are in consumer spending, along with advice on how to cut spending in these categories. “Naturally we expect to see growth in expenditure as [costs rise](https://www.financedigest.com/fortum-says-rising-costs-of-nordic-power-trading-are-worrying.html "Fortum says rising costs of Nordic power trading are “worrying”"), however our insight shows us that it is the leisure markets that are driving the biggest growth, with clothing and footwear, communication, and recreation and culture seeing the most significant growth since 2007. This points towards [consumer confidence](https://www.financedigest.com/asian-shares-rise-after-consumer-confidence-boosts-nasdaq-to-record-high.html "Asian shares rise after consumer confidence boosts Nasdaq to record high") despite the low levels of income growth. With that said, it will be [interesting to see how income](https://www.financedigest.com/abn-amros-q3-profit-jumps-as-interest-income-recovers.html "ABN Amro’s Q3 profit jumps as interest income recovers") levels in the coming months weigh up against expenditure, as we would hope to see the disparity between the two lessen in time.” --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---