Consumers 'not yet over the recession'

Tuesday, May 18th 2010

Consumers are not yet likely to see the recession as something that has been and gone.

This may be a result of job security fears and a lack of confidence in the market, according to Ivan Browne, director of GfK Consumer Products and Retail.

He also mentioned the general election as a factor in the current climate and stated the situation will remain until there is clarity over the election's financial impact.

"There is a long way to go before consumers accept we are through the worst of the recession, which means retailers will continue to see a slow recovery in spending particularly for major purchases," Mr Browne continued.

His comments follow research from the British Retail Consortium, which showed a rise in consumer confidence for the fourth quarter in a row.

But concerns over employment, debt and bills still remain, it noted.

Mr Browne said job security could get worse as cutbacks in the public sector are revealed.