Drop in consumer spending threatens company profits

A WORRYING fall in consumer spending is threatening to turn 2003 into another difficult year for company profits, according to a survey to be published in Britain today.

Leading accountancy firm Ernst & Young said the number of profit warnings in the final quarter of last year rose dramatically as customers held on to their cash.

And it warned that the coming months are likely to be even tougher with firms in the leisure, entertainment and hotel sectors under increasing pressure.