"Fears that UK consumers will rein in spending in the second half of this year has knocked the values of some of Britain's biggest retailers including the parent groups of Primark and B&Q, and DIY chain Wickes. The retailers' share prices dropped on Tuesday morning after analysts at Deutsche Bank warned that retail spending could be hit by the cooling UK jobs market and easing growth in household income."
"Fear of unemployment may constrain household spending amid concerns over inflation, the analysts wrote in a note that flagged particular concerns about Next, Wickes and Kingfisher, which owns B&Q and Screwfix, as well as Associated British Foods, which owns Primark. It said that essential costs for households were likely to increase, putting a squeeze on discretionary spending such as clothing and DIY."
Warnings that retail spending could be hit by a cooling UK jobs market and easing household income growth led to share price drops for major retailers, including the parent groups of Primark and B&Q, and DIY chain Wickes. Fear of unemployment may constrain household spending amid inflation concerns. Essential household costs are likely to increase, squeezing discretionary spending on clothing and DIY. Food retailers such as Tesco and M&S and discounters like B&M are expected to benefit from rising grocery costs. Predictions of tax increases in the upcoming budget could further hurt consumer confidence. Early signs of cracks in the labour market include a rising unemployment rate and falling payroll numbers.
Read at www.theguardian.com
Unable to calculate read time
Collection
[
|
...
]