Dark winter ahead’ for UK retailers and consumers, warns chief economist – Retail figures

Jeremy is warning there is a ‘dark winter’ ahead for the UK economy and consumers as the furlough scheme comes to an end.

Jeremy Thomson-Cook, Chief Economist at Equals Money said: “Growth in the retail sector continued in September, but concerns will also be on the rise over whether the sector is resilient enough to get through what is shaping up to be a dark winter for the UK economy. Food store growth is expected to remain strong with consumers likely to overspend on the upcoming festive season as a treat to themselves after a tough year, especially in areas where bars and restaurants are closed or closing to due to new Covid-19 lockdown measures.

“The elephant in the room remains just how strong consumers can be in an economy that sees those without work, or the ability to work with less cash in their pockets, as a result of the end of the initial furlough scheme. The government’s improved offer is a start but will still leave a lot of people, through no fault of their own, with very little to live on through this winter.”

“Sterling has not reacted to the announcement and is instead taking its cue from hopes around a forthcoming Brexit deal”