Can the consumer drive the UK recovery?. (1st August 2013)

• Record Type: Journal Article
• Is Part Of: Economic outlook. Volume 37:Number 3(2013)
• Page Start: 17
• Page End: 24
• Publication Date: 2013-08-01
• Subjects: Economic forecasting -- Great Britain -- Periodicals; Great Britain -- Economic conditions -- 1945-1964 -- Periodicals; 330.94100112
• DOI: 10.1111/1468-0319.12006
• Languages: English
• ISSNs: 0140-489X

Abstract

Abstract : Consumer spending has consistently disappointed since the onset of the financial crisis, hampered by a severe squeeze on real wages and the need to deleverage. Spending is currently more than 3% lower than the late‐2007‐peak, a marked contrast with previous recoveries when spending had risen well above previous peaks by this stage. However, the consumer finally showed signs of life in 2012 following a firm rebound in real household incomes. This improvement was driven by robust growth in employment, weaker inflationary pressures and the high uprating of social benefits…