In today’s briefing:
- UK: Retail Durables Knocked Out by Costs
UK: Retail Durables Knocked Out by Costs
- Retail sales disappointed by declining again in Feb-22, despite clothing sales surging back towards pre-covid levels. Inflation squeezed out a higher value of spending.
- Consumers will need to prioritise essentials while avoiding expensive discretionary commitments. Confidence in the climate for major purchases has already collapsed.
- Real incomes face severe erosion in 2022, and we still expect consumers to reflect that hit in volumes again rather than raising nominal consumption growth.
Before it’s here, it’s on Smartkarma
