Although the latest news has been mixed, consumer spending on the whole appears to be holding up well. But there are other signs that cracks in the recovery are appearing, including recent falls in consumer confidence and borrowing. With the emergency Budget on 22nd June likely to contain significant tax rises and government spending cuts, confidence could take a further knock, while consumer incomes face an intense squeeze. Consumer spending may continue to hold up in the very near-term, but the outlook remains pretty bleak.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services