Seeking the elusive consumer boom
Article Abstract:
UK consumption has not risen greatly in 1996 with sales volumes for May 1993 at 0.3% above those for Dec 1995. Windfalls are likely to be spent which should boost consumption later in 1996. A drop in interest rates and a revival in the housing market should also help consumption to rise. Total consumer spending includes services, eating out and buying cars as well as retail sales, and total spending is rising more rapidly than retail sales. This means that the rise in spending may have been underestimated going by retail sales alone.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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UK consumer spending: in the money
Article Abstract:
UK consumer spending may be affected by tax reductions and windfalls such as rebates from electricity utilities in 1996. Some economists argue that windfalls do not increase wealth so spending should not rise. The windfalls are given because something that consumers owned has been sold. The perception of consumers may be different, however, and it is not clear how UK consumers will behave. A rise in consumption would lead to higher interest rates.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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