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Rising real pay boosts consumer recovery

The latest data indicate that the outlook for UK consumers remains bright. Inflationary pressures look set to continue to ease over the course of the year, which should mean that real pay picks up further, following its first rise in almost six years. In addition, employment is likely to register further strong increases, and consumer confidence may continue to build. This all suggests that the consumer recovery will be able to maintain a healthy pace in 2014.

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