Britain is set to have the slowest growth in consumer spending in six years in 2019, recent research has show.
Spending will rise by 1.6% compared with last year, the EY Item Club forecast predicts, although this outperforms an estimated 1.3% growth across the UK economy for 2019. Average annual earnings are expected to grow by 3.2% over the year, compared with 3% in 2018.
Chief economic advisor to the EY Item Club Howard Archer said: ”The improvement in purchasing power has meant that consumers have been significantly less affected in their spending decisions than businesses by uncertainties over the economy and Brexit.
”While consumer confidence in late 2018/early 2019 weakened to the lowest level since mid-2013, perceptions of personal finances and a willingness to spend generally held up much better than views of the economy.”