SHANGHAI, Aug. 14, 2017 /PRNewswire/ -- Ashton
Whiteley: According to recently published data, UK consumer
spending dropped for the third consecutive month last month in what
is the most prolonged decline since 2013.
Market analysts at Shanghai,
China-based investment house Ashton Whiteley, say that this
prolonged period of decline in consumer spending is yet another
sign that the effects of the Brexit vote are impacting on consumer
households.
According to a recent report by Ashton
Whiteley, general consumer spending, the backbone of the UK
economy, fell by 0.8 percent in July compared with a year
previously. A speedier decline than June's drop of 0.2
percent and, on the heels of an additional drop in May, July's
fall in consumer spending marks the longest running decline in more
than four years. Similarly, in February
2013, consumer spending dropped as a fragile economy battled
to come back from the global financial crisis.
Ashton Whiteley analysts are of
the opinion that the figures offer additional proof that inflated
prices and lack of salary growth are having a decidedly negative
effect on household spending capacity.
Following a downgraded forecast for economic growth by the BoE
for both 2017 and 2018, the data corresponds with other indications
that the average British home is feeling the squeeze. Retail sales
have fallen along with mortgage approvals and new car registrations
in recent months.
A drop in the value of the British pound since the Brexit
referendum in June 2016 has spurred
inflation while salary growth stagnates, placing pressure on
household incomes. As a result, consumer confidence is currently at
a one year low.
Contact - Market Watch Asia - 128 Chaoyang Park S Rd,
Chaoyang Qu, Beijing Shi,
China.
media@marketwatch-asia.com
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SOURCE Ashton Whiteley
