4095 days ago
I cannot figure out the consumer spending patterns in Bankrupt Britain – something does not add up
I have to admit that consumer spending patterns have me rather flummoxed. And this makes life, certainly when it comes to investment recommendations, just that little bit tougher. My problem is that empirical data does not seem to be backing up what has been a core macro-economic assumption for me. Well, it is in parts.
My assumption was that with most of our fellow citizens in this green and pleasant province of the EU still heavily indebted and, with a psychic sixth sense, aware that interest rates are bound to increase (something the bond market is telling you pretty explicitly); consumer spending would be pretty soggy this year.
In the run up to and after Christmas, things seemed to be going to plan. Trading across the High Street was pretty weak. Indeed, it was bad enough to push a number of high profile retailers with flawed business models over the edge. I see that Republic has now joined Jessops and HMV in retail heaven today. Surely this would only add to the consumer gloom?
