The outlook remains bright for further strong growth in consumer spending over the coming quarters. Although the jobs recovery has slowed, the economy has retained a healthy degree of momentum, suggesting that productivity is finally on the rise. This bodes well for a pick-up in wages over the coming months. In addition, with cost pressures remaining markedly subdued, consumer price inflation looks set to continue to ease, perhaps to below 1% by the end of the year. This, in turn, should provide a much-needed boost to consumers’ real earnings, and therefore offer a more robust foundation for continued strong growth in spending.
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