Bounce-back from snow may be short-lived (Mar 10)

It is clearly reassuring that consumer spending has recovered somewhat after the snow and VAT rise pulled down spending at the start of the year. And in the near-term, spending should receive some small additional support from the Budget giveaway for this fiscal year. However, the consumer recovery still looks shaky. The housing market is starting to slow, the recent falls in unemployment have come alongside further falls in employment and the Budget was only a holding exercise before the real fiscal squeeze starts after the election. The recent bounce-back in spending therefore looks set to be short-lived.