Household Spending Slumps to Two Year Low

Household Spending Slump

Household spending has slumped to a new two year low. The fragility of consumer spending, even before the full of effects of public spending cuts have been felt, means an imminent rise in interest rates is unlikely.

The OECD though, a leading economic thinktank, has called on the Bank of England to start raising interest rates to prevent inflation, currently at 4.5 percent, taking a grip on the economy.

Household spending shrank by 0.6 between January and March,.

Economist at Daiwa Capital Markets said: “”Most shocking is perhaps the scale of the fall in consumer spending. Following the contraction in the fourth quarter, these figures underline the significant weakness in the consumer sector. And given the recent comments from the Bank of England that unexpected weakness in consumer demand would mean a slower pick up in interest rates than markets have priced in, we believe these figures reinforce our view that the majority of the monetary policy committee will continue to vote for no change in interest rates this year.”

Ricky Steedman

Ricky worked as an Investigator in the Inland Revenue for over 20 years before founding Steedman & Company in 1987, giving him the experience and knowledge that enabled him to help so many clients over the years.

His appearance on a Channel 4 television programme about the inside workings of Revenue and Customs was watched by 4.1m which sealed his status as one of the most highly respected tax consultants to ever work in Scotland.

Ricky led all tax investigation and COP 9 cases, using his extensive knowledge to help people reach a positive resolution to their situation.

Ricky passed away suddenly and unexpectedly in June 2022 after leaving his indelible mark on the company he founded and headed for over 35 years.