Household spending falling during lockdown but groceries, alcohol and hobby sectors boosted by ‘isolation economy’

‘The home is becoming a more flexible space, doubling up as a place for schooling, work, fitness and entertaining,’ says expert

UK households are spending more on groceries, alcohol, entertainment and hobbies than they did before the lockdown, researchers have found.

Consumers splashed out an average of £107 a week in these key ”at home” sectors — an increase of 10 per cent.

However overall spending fell by the equivalent of £215bn per year as a result of the “isolation economy” during the coronavirus pandemic.

The research, carried out by Legal & General and the Centre for Economics and Business Research, revealed the lockdown had triggered a shift in consumer spending habits equating to £12.9 billion annually.

Nigel Wilson, chief executive at Legal & General, said: “The isolation economy is a new feature of our daily lives and now encompasses some £13 billion a year of the consumer economy.

“As the hub of the isolation economy, the home is becoming a more flexible space, doubling up as a place for schooling, work, fitness and entertaining — and we can expect changes to the way we think about and design homes for future home owners.”

The research suggests adults are dedicating 20 minutes more each week to fitness than before the crisis.

They are also watching TV, streaming programmes and gaming for an extra two hours 22 minutes each week.

Shops in local communities may also benefit from changing habits, with 60 per cent of people planning to buy more products in local stores to help the local economy in the longer term.

More than half (58 per cent) of people said they would be willing to pay more for products that have been made in Britain, rather than imported from overseas.

On average, adults are spending £73.69 per week on grocery shopping. Overall across the UK this represents a nine per cent rise among all adults, and a 14 per cent increase for those who have had no changes to their salary or employment status as a result of Covid-19.

The rise was largely driven by those aged between 35 to 54, who are spending £89.94 per week on groceries.

Additional reporting by Press Association