UK Economics

UK Economics Chart Book

19 October, 2017

Spending holding up as pay squeeze reaches its worst

There can be no question that consumer spending growth has suffered as nominal pay growth has lagged behind the ongoing currency-driven bout of higher inflation. But some of the slowdown in consumer spending growth should be reversed in Q3 as car sales rebound. Indeed, a large part of the slowdown in Q2 reflected a shift in car purchases from Q2 to Q1 to beat April’s rise in Vehicle Excise Duty. What’s more, higher inflation has not led to consumers tightening the purse strings. In fact, we have

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