Brexit: What Lies Beneath?
With the incessant talk of backstops, customs unions and a shifting March 29th deadline, BREXIT still dominates the political and economic landscape almost to the exclusion of all else. However, in the background (and almost unseen), there are potential shifts taking place creating an economic upswing, and helping to lift retail gloom.
Believe it or not, retail sales growth has actually been ticking along well, boosted by substantial purchases (such as homes) and smaller discretionary spending. The UK boasts almost full employment, wage growth at the fastest pace in a decade (3.4%), and a positive uptick in Discretionary Income Trackers which calculate the average amount left in household accounts after taxes and bills. It all begs the question “What are we doing with this extra cash?” Well it seems that the smart money (excuse the pun) is going on paying DOWN some of our debts.
BUT let’s jump forward and play ‘What if?’
What if our politicians get their act together, and agree on a future for the country?
What if consumer confidence levels improve against this more positive political backdrop?
Could this lead to consumers hitting the high street once more? Could the average UK consumer feel more confident about increasing their discretionary spending?
It will be interesting to see how and if things improve post-BREXIT. You never know, the resurgence of the High Street could be upon us (but don’t quote me on that)!
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