The underlying picture for household spending remains positive. Real household spending in Q3 looks likely to have grown by around 0.8% q/q, the rate seen in Q1 and Q2. And while retail sales volumes fell in October and private new car registrations were down on a year earlier, they were coming off strong bases. What’s more, the fundamental drivers of household spending remain positive. CPI inflation stayed slightly negative, wage growth is solid and employment growth has resumed after a temporary blip earlier in the year.
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