Household spending increasing faster than income

Household spending in Guernsey is increasing faster than income, a survey has found.

The Household Expenditure Survey Report 2012-2013 compares data with the previous report of 2005-2006.

The report found that average household spending had increased by 12 per cent, while household income went up by five per cent.

Figures show the average Guernsey household spends just over £4,530 per month.

The report found that average household expenditure in the island rose to just over £54,000 per year.

Housing, fuel and power account for the largest proportion of household spending at 25% of total outgoings.

The average weekly shop costs just under £100, but the proportion of expenditure on food has decreased over the past 50 years, the survey said.

Pierre Blampied, the managing director of mortgage broker SPF Private Clients Guernsey, said: "The percentage of income going towards a mortgage is far greater than it used to be. People tend to live beyond their means. It doesn't surprise me that people are eating into their savings."

Just over 1,000 local households took part in the survey, which is carried out every five to seven years.