UK consumer pullback sees worst year for spending since 2012
UK consumers curb spending for first time in five years in 2017 as surging inflation and falling real wages took their toll on high street retailers.
(Bloomberg) Visa’s UK consumer spending index slipped 0.3% last year from 2016. It also fell an annual 1% in December, the crucial Christmas shopping period for stores. It’s unlikely to recover this year, the credit card company said.
"Household purchasing power is being continually eroded," said Annabel Fiddes, principal economist at IHS Markit. "Meanwhile, consumer confidence remains relatively muted amid uncertainties over the strength of the UK economy and the ongoing Brexit negotiations. It seems unlikely that expenditure will bounce back to the levels of growth seen in 2016 anytime soon."
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