Encouraging news about consumer spending

BDO, the  fifth largest accountancy network in the world, has revealed encouraging findings for the UK High Street sales.

Taking into account such aspects as spending cuts and tax increases, there is an expectation on the part of many financial analysts that consumers will try to spend money reasonably, which will inevitably have a negative impact on retailers.

However, BDO says that sales are likely to see a boost of 3 per cent during  Christmas time because consumers will have the last chance to throw themselves into an active shopping before the VAT increase comes into force on 1 January 2011.

Thus, the period between Nov 29 and Jan 2 is likely to be marked by sound growth. The study has shown that even though this Christmas will not be as good as in recent years, an active spending will take place.

Expensive items are likely to grow ahead of the VAT increase.

In the meantime, BDO claims that the UK consumers will continue spending in 2011 in spite of the unfavourable economic environment.

In related news, a recent study from PWC reveals that the VAT rise will bring about a 0.2% decrease in consumer spending over the next year.
 


Articles

The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.