Consumer Confidence

Ahead of the EU referendum Remain claimed the economy would hit all sorts of troubles if we voted to leave. I was particularly interested therefore to see this week that the official figures for consumer spending in the April to June quarter rose by 0.9%. The Office for National Statistics estimates the economy grew at 0.6% overall in the second quarter. The figures for retail sales in July showed a growth of 5.9% compared to July 2015. Only one month and it would be unrealistic to expect that level of growth to continue but it provides a boost for retailers and is some evidence of the confidence consumers have. We need Companies to demonstrate similar confidence in the future when it comes to investment decisions.
Of course, I expect there will be downturns in the future. Leaving the EU will not prevent the UK from being affected by slowdowns elsewhere in the World. What matters is that the UK does all it can to take maximum advantage of the freedom it will have to negotiate new trade deals with Countries around the World to make it easier for our exporters.

Published by David Nuttall

Business and Political Consultant

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