Why consumers will determine the UK's economic prospects in 2018

Alan Custis of Lazard Asset Management

Alan Custis of Lazard Asset Management

British consumers held up well in the wake of the UK Brexit referendum last year, but signs of weakness have emerged.

The resilience of UK consumers in 2018 will be an important determinant of the UK's economic prospects, and will likely have implications for domestically-oriented stocks.  Lazard AM's Custis rotates out of UK consumer-facing stocks as Brexit concerns intensify Inflation has increased materially since the UK voted to leave the European Union, and has meant real wages have failed to keep pace with price increases, crimping consumers' disposable incomes.  Consumer spending patterns are important as household expenditure accounts for 60% of UK GDP, meaning that a marked slowdown could...

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