'The impact of Liz Truss's leadership is not over, we have to get close to the spending season.'
Based on the gloomy economic situation in the United Kingdom (UK), market players are predicting a contraction in spending by Britons in the 4th quarter (Q4) of 2022.
The foundation was reached after a survey by Barclaycard found that 48% of UK citizens plan to cut back on spending for Christmas, 58% refuse to buy expensive items and 42% want to stay at home during the holiday.
As you know, the holiday season is a festive period in the UK with most people going out to buy accessories in the lead up to Christmas.
Back to the original headline, the British Retail Consortium also reported UK consumer spending in October rose 1.6% but down from 2.2% the previous month.
It marks the biggest fall in consumer purchases in the UK with inflation taking center stage in the country's economic situation.
The BRC's chief executive, Helen Dickinson, commented that the bleak economic situation has made consumers fear spending with many UK citizens focusing on rising mortgage payments.
It should be noted that British inflation rose again to a 40-year high of 10.1% during September and the Bank of England (BOE) is forecasting an increase of 11% in the latest quarter.
Therefore, the BOE has taken the decision to raise the interest rate to 3% which is the highest level since 2008 and risk a recession for the country's economy.
Meanwhile, the BRC reported food spending in October rose 5.1% with non-food spending down 1.2%.
Additionally, energy expenditure was up 36% from a year ago but down from 48% during September.
