Sainsbury’s chief executive Justin King told a grocery industry conference that despite all the indications that the recovery is gaining momentum, it was unlikely to filter through to spending power on the high street any time soon.
“In 12 months time I think we’ll be sitting here saying inflation’s running at about 3 per cent and average wages have gone up about 1 per cent – so net on average a couple of percent out of peoples’ incomes. The reality is whatever happens in the economic backdrop, we’re not going to see a sea change in the amount of money that consumers have to spend.” he said.
“In 12 months time I think we’ll be sitting here saying inflation’s running at about 3 per cent and average wages have gone up about 1 per cent – so net on average a couple of percent out of peoples’ incomes. The reality is whatever happens in the economic backdrop, we’re not going to see a sea change in the amount of money that consumers have to spend.” he said.
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The organization’s latest report challenges the notion that the region is out of the woods. It sees potential for a renewed financial crisis, and is critical of the slow pace of banking and economic reforms. Labor markets remain mostly uncompetitive in the peripheral countries. Bank credit continues to shrink. Sober Companion
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