Happy New Year!
A survey carried out by Markit last
month showed that 43% of households expect their finances to worsen
this year against 24% who expect their finances to improve.
Without a strong rise in consumer
spending it is unlikely there will be much real growth in 2013.
Businesses held back investing in plant and machinery throughout 2012
and this is likely to continue if consumer spending remains subdued.
Begbies Traynor have highlighted that
around 140 high street shop chains could go out of business in 2013
without any increase in high street spending. These stores remain
highly geared and will be seriously affected by the consumer
continuing to bargain hunt and shop on-line.
A spokesman for Markit said
‘Households are bracing themselves for yet another year of squeezed
personal finances in 2013. The vast majority of households anticipate
that their financial wellbeing will either worsen or stagnate in
2013. With three quarters of all households not expecting any
improvement in their finances, the latest survey suggests that
domestic consumer demand will remain under pressure in the near term,
especially since inflation perceptions remain elevated and job
insecurities are prevalent’.
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