High mortgage expenditures and increased utility and tax bills may impact consumer spending this holiday season, but British analysts fear worse in 2008.

The British Retail Consortium said its members are anxious in the run-up to the holiday season, but say increased pressure from the rise in living expenses may have long-term effects extending beyond the immediate forecast.

Some retailers are predicting moderate to flat spending this season, but note that many retailers are attempting to offset the forecasts by discounting prices earlier than usual, the Independent reports.

One retail analyst is quoted as saying, “The consumer will continue to spend over Christmas. The unknown is next year.”  // Copyright 2007 by United Press International



Publication date: 29 October 2007   

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