UK: Consumer spending could rebound in the second half of 2024
Positive economic indicators and the highest consumer sentiment in three years may boost retailers in late 2024, per PwC's latest survey
While there’s an intention for more spending, the majority of consumers are planning cutbacks. So where will consumers prioritize spending? And how can retail and leisure operators prepare for the Golden Quarter?
Key takeaways
- The pinch felt by consumers appears to be easing. Economic indicators – falling inflation, interest rate cuts expected later this year, and rises in wages, benefits and pensions – all point more favorably for consumers;
- The improvement in inflation appears to have bottomed out, with services inflation stubbornly high and pressures on grocery and energy price inflation expected this autumn;
- While these indicators point to a more favourable end to the year for retailers, they need to be balanced against positive - but still lacklustre - spending intentions.
Get the full report at PwC