Consumer spending will slow down next year, as inflation starts to increase and new austerity measures begin to take hold, forecasters have warned.
Shoppers will enjoy “one last hurrah” this year thanks to low inflation and an uplift of wages from the new national living wage which comes into play in April, according to economic forecasting group the EY Item Club.
But it expects conditions to be tougher next year as household finances are squeezed by higher inflation and fiscal austerity, City AM reported.
Consumer confidence has fallen to a 12-month low of 112.7 in February, acording to figures from YouGov and the Centre for Economics and Business Research released today. The data from 7,000 consumers pointed to concerns around household finances, change in house value and job security over the year ahead.