2013 ends on a reasonably positive note

2013 ended with a mixed picture for the consumer sector, with surprisingly strong official data set against some softness in the surveys and in the anecdotal evidence from the high street. Nonetheless, real spending probably saw another rise in the fourth quarter as a whole. And prospects for 2014 look bright. A recovery in real earnings and growth in employment will bolster consumers’ finances and support confidence to spend. As a result, we expect real spending to grow by about 2.5% this year.