Millennial money worries push consumer confidence to two-year low

Financial worries among 'millennials' has pushed UK consumer confidence to a two-and-a-half-year low, according to new research.

A monthly survey of over 2,000 Lloyds bank account holders by Ipsos MORI found those who felt positive about their personal finances in October fell by three percentage points to 61% from 64%, the lowest level since April 2015.

Just 60% of those aged 18 to 24 and 61% of 25- to 34-year-olds felt positive about their personal financial situation, compared to the 78% among the Baby Boomers aged over 65.

There was also a large disparity between women, with just 58% feeling financially robust, and men, where 64% were feeling well moneyed. .

The survey found 13% of those surveyed were planning to cut back spending on essentials to fund their Christmas spending.

Meanwhile, Lloyds Bank’s analysis of its own customer account data showed that people continue to spend more on essentials. It found 2% year-on-year growth in consumers' essential spend for October, which was the 17th consecutive month of year-on-year growth in essential spend.

Amid the return to grocery inflation, spending on food accounted for around 40% of all essential spending in October, up 2% year-on-year and a seventh consecutive month of growth. Fuel spend rose by around 5%, a 14th consecutive month of year-on-year growth.

Gas and electricity spending rose to around 2.5%, from around 1% last month. This is the third consecutive month of spend increase, following over three years of continuous decline.