UK Retailers Face Tough Ten Years
According to the think tank group Ernst and Young Item Club, UK consumer spending could face a slow growth of only 2% per year on average for the next decade.
It is believed that growth for 2011 will be 0.6% and 1.3% in 2012 as people aim to clear their debt first before spending anymore.
"The squeeze on household budgets is only going to intensify this year, as the gap between high inflation and subdued wage growth continues to widen and we experience a second consecutive year of declining disposable incomes," said Andrew Goodwin, chief economic adviser to the Item Club.
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