Brexit Bites Back
According to Barclaycards monthly numbers consumer spending was up by a stunning 3.9% last month. Good news you’d think. Well no, it’s not. This is because it was driven largely by a 4.1% increase in grocery spending as supermarkets start to pass in the increasing costs that the drop in Sterling post Brexit vote.
Spend on non essentials actually dropped by 3.9% in the month in order that people could still afford to eat!
However the area that seems unaffected by this upheaval is entertainment as pubs and restaurants both experienced y/y increases in excess of 10%.
The fall in the value of the pound has recently seen inflation peak at a 6 year high of over 3%.
This may we’ll just be the start unless the government can successfully negotiate friction free access between us and the EU.
So keep a watchful eye on the shenanigans in Brussels as they could have a real cost to you and your business if not concluded amicably. Also note the ongoing transfer of spending between non essential goods towards entertainment and experience when you are thinking about your businesses plans ongoing.