People 'probably going to have to cut back on spending'

By Sarah Engle, Tue 24 Jun 2008 - Published in Credit Cards

With credit cards harder to come by and living costs rising in the UK, May's strong sales were probably just a blip, according to the economic research consultancy, Capital Economics.

Economist Vicky Redwood said: "With so much going against consumers at the moment it's hard to see how they can continue spending as much."

She added that last month's sunny weather could have been one factor which encouraged people to splash the cash.

Statistics released by the Office for National Statistics revealed that sales of seasonal food and clothing were responsible in part for May's strong sales figures.

Sales from March to May increased by 1.8 per cent compared with the preceding three months.

This comes after 1.5 per cent growth in the three months to April.

However, the British Retail Consortium has said that some sectors are still suffering with sales of furniture and larger items for the home down on a year ago, despite continued promotions and discounts.

News Categories

News Archive

News: People 'probably going to have to cut back on spending'