LV= uses indices to track overall changes to spending, saving and finances. The indices are calculated by taking the percentage who stated a positive change over the past three months (e.g. increase/ better) and subtracting the percentage who stated a negative change over the past three months (e.g. decrease/ worse), to work out the overall impact.
- Financial outlook: The index measuring financial outlook for the next three months was -28 in March 2023 compared to -36 in December 2022. A negative index means more people think their finance will worsen over the next three months compared to those who think it will improve. The index has improved by +8 indicating fewer people have a negative outlook compared to the previous quarter. Some 40% (21m) expect their finances to worsen over the next three months while 12% (6m) think it will improve.
- Finances over past three months: The index measuring people’s finances over the past three months was -42 in March 2023. The negative index indicates that more people say their finances have got worse over the past three months than those saying their finances have got better. However, this index has improved compared to December 2022 when the index was -49, indicating finances may be starting to improve for some. 51% (27m) say their finances have deteriorated over the past three months while 9% (5m) said their finances had improved.
- Income and outgoings: The index measuring income fell from 9 to 5, as a smaller proportion of people said their income from work had increased. The index measuring outgoings fell from 59 to 54. Many more people (63%/33m) say their outgoings have increased compared to decreased (8%/4m).
- Savings index: Savings remains low. The index measuring amount saving was -13 in March 2023 compared to -16 in December 2022.
- Spending on socialising and at the supermarket: The index measuring socialising spend was -12 in March 2023, compared to -13 in December 2022, showing minimal change quarter on quarter. The index measuring spending at the supermarket was 53 in March 2023, compared to 57 in December 2022. A far greater proportion of people (63% or 34m) say their supermarket spend has increased compared to those who say it has decreased (10% or 6m).
vs. last quarter
|Financial outlook over next three months|
|Finances over past three months|
|Income from work|
|Total monthly outgoings|
|Amount paying into pensions|
|Spend at the supermarket|
|Spend on socialising|