| Updated:
Consumer spending drought will persist
CONSUMERS will continue to rein in spending this year due to a weak economic environment and rising unemployment, according to fund manager Alliance Trust.
The firm said that the financial confidence of consumers showed an improvement for a second successive quarter in the last three months, as household budgets improved, but that the economic backdrop will continue to weigh on spending.
The firm’s Financial Reality Index, a measure of consumer wealth, rose to its highest level since the first quarter of 2008 in the last three months, as consumers they were managing their finances better.
It rose to 66.8 in the second quarter, from 59.0, after falling continuously since mid-2007.