On economics

In the third quarter of 1992, the UK economy embarked on a record-breaking streak of 62 consecutive ...

In the third quarter of 1992, the UK economy embarked on a record-breaking streak of 62 consecutive quarters of growth. It is no coincidence consumer confidence was equally positive throughout the bulk of this period. When consumers are confident they will spend and that spending amounts to around two-thirds of total demand. Therefore, what is good for the consumer is good for the economy, and vice versa. Over the past few months however, that confidence has evaporated suddenly and sharply and with it the economic outlook going forward. Why has the consumer lost confidence? The wa...