UK household spending drops for first time in 10 years.

Figures released from the Office for National Statistics (ONS) revealed the impact the recession had on households across the UK. Data from the ONS annual Family Spending Report showed the average household spent £455 a week in 2009, lower than the £471 seen in 2008.

The report showed just how affected consumer confidence was in 2009 following the recession, as spending hit a 21-month low.

Interestingly, the figures revealed high earners were hit particularly hard during the economic crisis, with families in the top tenth income bracket reducing spending by nearly 12 per cent.

ONS statistician and report editor, Giles Horsfield said: “Higher expenditure on some housing related costs such as rent, electricity and gas [was] offset by lower spending on mortgages.”

Further figures from ONS revealed consumer spending in 2010 is on the rise with data leading to an increase in 7%, despite the looming VAT increase and the announcement of comprehensive public spending cuts.

More worries for UK economy – are we heading for a double dip recession?

A worrying report from the British Chambers of Commerce (BCC) warned that UK economic growth in the third quarter of this year was “considerably” slower than the previous quarter and businesses could still face trouble in months ahead.
With Christmas fast approaching and the VAT increase being introduced in January, it was thought that shoppers would try and get their festive purchases early but it seems the report has rejected the assumption.

A survey from the British Retail Consortium (BRC) revealed similarly concerning results showing that growth in the UK retail market slowed from 1% in August to 0.5% in September.

Although of course, these figures could change very quickly, it is a clear sign that the UK is not out of the water just yet.

Director general of the BRC, Stephen Robertson said: “We’ve now had six straight months of low growth thanks to persistently weak consumer confidence and worries about the future.”

He added: “It’s clear people are cautious and major spending is largely on hold.”

Which region in the UK is the most dangerous to do business in?

Companies based in the Northern Home Counties are the most likely to be in financial difficulty according to research from market analysts Plimsoll. Almost a third of companies across all areas of the UK economy that were based in this region were rated as Danger by Plimsoll.

Perhaps most surprisingly, the same research flagged unfashionable regions such as West Midlands, Yorkshire and the North East as having the least percentage of companies in trouble - averaging just over a quarter. Are directors based in these much maligned regions better at running their companies than their counterparts in more fashionable areas?

Here is the full breakdown of the number of companies analysed per region:

Plimsoll assessed 240,000 as part of this UK wide study. We produce over 1,500 specific UK market reports. Click here for more information about Plimsoll and the reports and services we provide.