Outlook ‘uncertain’ as spending to rise

CONSUMER spending is expected to strengthen this year but the outlook for 2011 is “shrouded by uncertainty”, according to IBEC.

The employer group said that while overall economic activity turned a corner earlier this year, the recovery is likely to be fairly muted for the remainder of 2010.

It said the strengthening of consumer spending is on the back of a relaxation of the very high savings rate which emerged last year. It said consumers will still face “considerable headwinds” over the coming months in the form of no wage growth, no net job creation and higher taxes.