Olympics increases UK expenditure by 4%

Spending underwent a substantial rise in the period leading up to (and during) the Olympic Games, with some sectors recording an increase of over 11%.

According to new research by Lloyds TSB, restaurants enjoyed the biggest rise in consumer spending as Britons set out to celebrate Team GB's Olympic success.

Spending in restaurants rose by 11.5% annually during the Olympic period. However, this may also be due to the milder weather witnessed by the UK during the 2012 Games which could have encouraged people to eat al fresco at restaurants.

Suren Thiru, economist at Lloyds TSB, said: “During the Olympics, the restaurant sector saw the strongest rise in spending growth, possibly boosted by those looking to enjoy the party atmosphere generated by the Olympics.

"The welcome arrival of the warm weather that coincided with London 2012, following months of rain, is also likely to have been a contributing factor.”

The spending category that recorded the second highest increase was health, with a 6.6% rise in spending on health and beauty products being recorded.

This boost may have stemmed from watching the world's best athletes live or on TV on a daily basis as they competed in the London 2012 Olympics, encouraging spectators to follow a healthier lifestyle.

In fact, out of the nine identified spending categories, eight witnessed a rise in spending compared with a year earlier.

Money spent on food and drink increased by 6% compared with the previous year. The fourth biggest increase during the Olympic period was recorded in electrical stores (4.8%).

Spending nationwide during the Olympic period was 3.9% higher than the year before.

Mr Thiru added: “Hosting London 2012 appears to have provided a welcome boost to consumer spending in some sectors. The rise in spending in the top three categories could all be partly linked back to either celebrating the event or consumers being inspired by what they were watching."

Auto fuel was the only category which saw a fall in spending (-1.5%).

If you are looking to up your spending in any of the above categories over the next few weeks, making the purchases on a rewards-based credit card could see you earning cashback and boosting your household income.

Tags: CREDIT CARDS

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