In November, the Bank of England forecast Britain was heading into a long recession, with inflation, running at 10.7%, not returning to its 2% target until early 2024 and the government’s budget watchdog predicted the biggest squeeze on living standards since records began in the 1950s.
“We also expect the recession to start to influence shopper behaviour and reframe overall retail spend,” Mike Watkins, NielsenIQ’s UK head of retailer and business insight said on Tuesday.
He said 2023 will be tough for UK households as 33% only have enough money for essential spending with just 5% able to spend freely. Consumers in the middle are those that live comfortably but still watch their wallets.
Read more at Reuters
