Households make fewer transactions but spending stays level as rising costs bite

Households made fewer transactions in April, but the amount they spent did not drop, in a “clear sign” of the impact of rising prices, according to Britain’s biggest building society.

By Andy Moffatt
Monday, 23rd May 2022, 3:18 pm

The Nationwide Building Society’s members made around five million fewer transactions than they did the previous month.

Some 212 million transactions made in April compared with just over 217 million in March.

Despite the drop in the number of transactions, the total amount spent by members in April remained broadly similar to March, Nationwide said.

Sign up to our daily newsletter

This suggests that while people may be trying to cut back on the number of purchases they make, the cost of what they are buying has increased.

Spending on holidays, cruises and airline travel as well as eating and drinking out and leisure remained higher than a year earlier, reflecting the easing of Covid-19 restrictions.

Spending on essentials was also higher than a year ago, reflecting increased costs, particularly around fuel, food and utilities, Nationwide said.