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UK households tighten spending as sterling drops

Thursday, August 24, 2017 - 01:29

British household spending grew at its weakest pace since late 2014 in the three months to June as the effect of a weaker pound since last year's Brexit vote weighed on Britons' spending power, official statistics showed on Thursday. Laura Frykberg reports.

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Bagging a bargain in Britain.. Perhaps no longer on trend. With new figures from the Office of National Statistics... Showing household spending at its weakest in Q2...Since late 2014. (SOUNDBITE) (English ) MARKET ANALYST AT PEPPERSTONE, DARREN SINDEN SAYING: "Domestically, the consumption may have fallen because people are heeding Mark Carney's warning about levels of personal debt." The UK car industry though - has stepped up a gear. Production rose by an annual 7.8 percent last month.. The domestic market surging by more than 17... While exports - which account for 80 percent of production - increased by 5.3 percent. (SOUNDBITE) (English ) MARKET ANALYST AT PEPPERSTONE, DARREN SINDEN SAYING: "I suspect that the weaker exchange rate makes them more attractive to foreign buyers." That evident in Sterling's fall against the dollar on Thursday. Dropping to a new two-month low. On a monthly basis, the currency has fallen nearly three percent so far. On track for its biggest monthly decline since October last year. (SOUNDBITE) (English ) MARKET ANALYST AT PEPPERSTONE, DARREN SINDEN SAYING: "The markets want interest rate rises in the UK, and the fact that they are not going to get them now is what is disappointing them, so they're going to keep pushing Sterling lower." And that could mean consumers - the drivers of the UK economy... Keep their wallets closed for the coming year... Many economists think rates won't rise till 2019. When the outcome of Brexit talks looks clearer.

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UK households tighten spending as sterling drops

Thursday, August 24, 2017 - 01:29