Buoyant housing market and moderate consumer spending show that, for all the political spin, UK economy not subsiding yet, says ALEX BRUMMER
- Consumers for the moment refuse to be blown off track
- Boris Johnson’s drubbing in Tiverton and Wakefield left trading unaffected
- Many citizens (and businesses) still cushioned by credit balances
Financial markets are never the best readers of the political runes. But the drubbing that Boris Johnson took in the Tiverton and Wakefield by-elections left trading largely unaffected.
In spite of the relentless talk about the cost of living and a summer of discontent, British consumers for the moment refuse to be blown off track.
A message from banks, worrying about credit going bad in the future, is that it isn’t happening yet in spite of headline inflation of 9.1 per cent and gently rising interest rates.
Battered: The drubbing that Boris Johnson took in the Tiverton and Wakefield by-elections left trading largely unaffected
Spending on holidays is roaring away, with many citizens (and businesses) still cushioned by credit balances in current and savings accounts built up in the pandemic.
Retail sales data for May was down by 0.5 per cent, less than the predicted 0.7 per cent, with much of the…