UBS On-Air: Paul Donovan Daily Audio 'Cool consumers'

The effects of weak pay bargaining power are starting to catch up with developed economy consumers. Real spending is tending to be negative. The UK British Retail Consortium survey of retail sales and Barclaycard credit card data showed falling real consumer spending. High food prices meant money had to switch to food retailers—profit-led inflation can move profits from sectors of the economy with weaker pricing power to those that can get away with margin expansion.