The Telegraph, February 5, Roger Bootle
We all know that this year is going to be a difficult one and that consumers – and therefore most businesses that sell to them – are going to be in a tricky situation.
This Friday sees publication of the GDP figures for Q4. I expect these to show a small rise in overall GDP but consumers’ expenditure should show a fall on the quarter. Is there any realistic prospect of relief for consumers and the businesses serving them?
When looking at the financial pressures on households, the most comprehensive measure to focus on is Real Household Disposable Income (RHDI). As well as income from employment, taking account of the number of people employed, this encompasses other household income, including interest payments and receipts, and the flow of benefits and grants from, and tax payments to, the Government.
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