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ARTICLE · 29 JANUARY 2013

Deloitte Monday Briefing: UK Consumer Turns The Corner

A discussion of the financial and economic issues affecting consumers.

United KingdomStrategy

* The last few years have been tough for UK consumers.

* Consumer spending fell by 6.6% between late 2007 and early 2009 – the biggest consumer recession since the 1930s. Since then spending has seen a weak and choppy recovery, one that has left UK consumers spending 4% less than they were in 2007.

* With consumer expenditure accounting for over 60% of the economy a weak consumer has been a major drag on the wider economy.

* But the relationship between the consumer and the rest of the economy has changed. Last year as the economy dipped back into recession the consumer sector returned to growth.

* Expenditure has risen for three quarters in a row, the first time this has happened since before the crash. In 2012 the UK economy saw no growth while consumer spending rose slightly, by 0.8%. Car sales rose by 5.5% last year. Unemployment fell and more jobs were created in the private sector than were lost in the public sector. Much of the job growth has been in

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