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Festive spending not affected by disposable income

November 21, 2007 by admin  
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Consumers will still buy what they need to be able to celebrate Christmas properly, even if their disposable income does not facilitate such spending, an industry expert has said.

According to the British Retail Consortium (BRC), both consumer confidence and disposable income have fallen this year, meaning that people may both be and feel “less well off”.

Head of media at the BRC, Richard Dodd explained: “[This] is a result of interest rate rises and also other costs having risen sharply, as well as mortgages, including utility bills, fuel bills and tax bills.”

He added that despite people being less well off and having less to spend, people will still “have the presence of the food and drink they want for Christmas”. This means that retailers will not suffer dramatically even though it may not be a “spectacular” year.

Deloitte have released predictions for spending which, it says, will increase by seven per cent on last year’s figures, with average spending per capita estimated at £706 up from £662 last year.

Tags: Personal life, year, disposable income, food and drink, fuel, fuel bills, tax, cent

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