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| Clothes and holiday spending down | Clothes and holiday spending down |
| (20 minutes later) | |
| Families have started to spend less on package holidays and clothing before the full effect of the credit crunch struck, official figures have shown. | |
| Spending on such items was lower in 2007 than in 2006, with expenditure on women's underwear seeing one of the largest falls, statistics show. | Spending on such items was lower in 2007 than in 2006, with expenditure on women's underwear seeing one of the largest falls, statistics show. |
| Transport costs took the biggest chunk of UK families' budgets in 2007, at an average of £61.70 a week. | Transport costs took the biggest chunk of UK families' budgets in 2007, at an average of £61.70 a week. |
| The next-largest areas of spending were leisure activities, housing and fuel. | The next-largest areas of spending were leisure activities, housing and fuel. |
| Spending spree? | Spending spree? |
| The findings are based on a survey of spending patterns of 6,000 UK households for the Office for National Statistics (ONS). | The findings are based on a survey of spending patterns of 6,000 UK households for the Office for National Statistics (ONS). |
| READ THE ONS REPORT IN FULL | |
| Family Spending in 2007 [2.39MB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here | |
| However, as the data relates to figures from 2007, it reflects the situation before the downturn in the UK economy got into full swing. | However, as the data relates to figures from 2007, it reflects the situation before the downturn in the UK economy got into full swing. |
| Expenditure rose in most categories between 2006 and 2007, the figures show, with households spending an average of £459 a week in 2007 compared to £449 in 2006. | |
| However, the figures show that average household spending on package holidays fell by 40p to an average of £13.40 a week in 2007, owing mainly to a dip in outlays on breaks abroad. | However, the figures show that average household spending on package holidays fell by 40p to an average of £13.40 a week in 2007, owing mainly to a dip in outlays on breaks abroad. |
| Spending on clothing fell during the year to an average of £22 a week - the lowest figure since 2001/02. | Spending on clothing fell during the year to an average of £22 a week - the lowest figure since 2001/02. |
| In this category, the amount spent on women's underwear dropped by 20p to £1.10 a week. | In this category, the amount spent on women's underwear dropped by 20p to £1.10 a week. |
| Snapshot | |
| The figures provide one of the most accurate snapshots of family expenditure. | |
| Spending on package holidays dipped in 2007, the figures show | |
| The biggest single category of spending was transport. | |
| It found that in 2007, the average family spent £61.70 a week on transport, some 13% of total average household expenditure. This was led by fuel and servicing of family cars, although the lay-out on rail and Underground fares was also up. | |
| Next on the list was spending on holidays, televisions, computers and other leisure activities. Households spent more on gambling (£3 a week) than they did on admission to cinemas, theatres and museums (£2 a week). | |
| Seven in ten households had a home computer, up from three in ten in 1997-8. In 2007, 61% households had an internet connection. However, the figures varied widely depending on the affluence of the household. | |
| Housing costs, excluding mortgage repayments, was the third largest category at £51.80 a week, or 11% of total spending. | |
| Next came food and drink, which included £14.60 on alcohol, £12.80 on meat, £3.70 on fresh vegetables, £3 on fresh fruit and £4 on non-alcoholic drinks. | |
| Some 69% of all food and non-alcoholic drinks were bought in supermarkets. | |
| Regional breakdown | |
| Those households headed by 30 to 49-year-olds spent the most, while the elderly were the most thrifty. | |
| Families in five areas of the UK - London, the South East, the East, Northern Ireland, and the South West - spent more than the national average. | |
| Spending was lowest among households in the North East. | |
| Household spending is expected to fall sharply in 2008, experts say, led by a downturn in the housing market. | |
| "The 2.5% cut in VAT won't do a great deal about that," said Jonathan Loynes, chief European economist at Capital Economics, referring to the temporary cut announced by the chancellor in Monday's pre-Budget report. |