The UK Consumer- not that bad

Recent data has suggested the UK consumer boom may be over as inflationary pressures reduce spending power. Our analysis is that 2017 and 2018 will show a moderation in spending growth but by less than is generally considered. Real wage growth may well dip into negative territory but this will be off set largely by a continuing fall in the cost of borrowing which remains the principle sensitivity. Please contact us for a copy of the note.