Household spending in UK drops for the first time in decade

UK household spending has fallen for the first time in almost a decade, according to the Office for National Statistics.

Family Spending, the annual report from the ONS, found that in 2009 the average weekly household spend was 455, down from 471 in 2008.

The findings of the survey are compiled through detailed diaries of spending kept by 6,000 households throughout the UK.

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The research showed average spending on transport was 58.40 in 2009, a fall of eight per cent on the previous year.

Spending on recreation and culture also fell slightly to 57.90 from 60.10 in spite of higher spending on items such as leisure classes, sports admissions, cinemas, theatres and concerts. Housing, fuel and power spending increased to 57.30 from 53.00 in 2008.

But spending on clothing and footwear was 20.90 a week, slightly lower than the previous year and continuing a long-term fall to the lowest figures recorded for nearly a decade.

Spending on household goods and services such as furniture and appliances also hit a long-term low, falling from 30.10 in 2008 to 27.90 in 2009.

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Asked at a briefing if the first fall in household spending for nearly a decade was caused by people buying less or falls in prices, Mr Horsfield said: "It is very difficult to tease the two apart because... we don't collect information on the volume of items that we spend money on, as opposed to the prices.

"But there are a few pointers – on the fuel in particular there is evidence that fuel prices went down in 2009."

Nearly three-quarters of the 52.20 average weekly spend on food and non-alcoholic drink was bought from the large supermarket chains, the research found.

Figures for the combined period 2007-2009 showed average household expenditure in the UK was 461.70 a week.

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London households spent the most on average at 552.30 a week, with those in the North East spending the least at 387.20.

The higher spending in the capital was partly because of housing, fuel and power expenditure at 80.10 a week, compared with the UK national average of 54 a week. Households in rural areas had higher overall expenditure at 500 a week compared with those in urban areas at 450.20.