High street retailers are expected to struggle until up until potentially 2020 as consumers are expected to hoard their cash, forecasts financial services company Ernst & Young ITEM Club.
In a piece, carried by The Telegraph, it is predicted that consumer spend it unlikely to return to pre-recession levels before 2015 at the earliest, although that could run until 2020, as consumer confidence stalls.
Consumer spend is expected to rise by 1.1% in 2012, with a forecast of an average increase of 2.3% between 2012 and 2012.
Quoted, is Ernst & Young ITEM Club senior economic advisor Andrew Goodwin, who claims that the worst of the ‘squeeze’ on consumer income is now at an end.
“However, rather than splashing their cash, we’re expecting to see conscientious consumers keeping a relatively firm grip on their purse strings. Instead, they are likely to focus on trying to pay down debt,” he added.
Goodwin also highlighted the current uncertainly surrounding the Eurocrisis, which could well see consumer confidence fall again as a result.
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