U.K. Consumers are Spending Through Headwinds

Dow Jones
昨天

1254 GMT - U.K. consumers continue to demonstrate a strong willingness to spend, helping the economy even with elevated energy prices and the prospect of higher interest rates, Pantheon Macroeconomics' Rob Wood and Elliott Jordan-Doak say in a note. Some of August's 0.5% rise in retail sales volumes was flattered by earlier-than-usual promotions in June weighing on July's sales figures. "But that misses the big picture that households' spending has been strong for months now, despite the barrage of headwinds," the economists say. The trend in retail sales volumes has risen 2.4% month-to-month annualized over the past six months, they note. However, consumer spending is set to slow with climbing energy costs and higher mortgage rates ahead, they add.

 

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