Friday, July 25, 2008
Much worse could follow as the consumer crunch deepens
"With families already burdened by soaring costs of living, rising mortgage bills, slumping house prices and modest pay deals, Britons are set to abandon their past high-spending habits, said the National Institute for Economic and Social Research. A continuing slide in house prices until 2010 was one key factor set to take a further toll on consumer spending and confidence, it cautioned. Based on the value of homes dropping by 10 per cent, it calculated that this would reduce households’ total wealth by £357 billion"