Consumption is rising, as Hamish McRae points out, as he is monitoring the state of the recession all the time, as an economic speaker. As the VAT increases in the new year, everyone starts to buy before the end of the year.
Hamish states that it is nevertheless encouraging to see that sales are increasing as the past year has been so bad. The government will need to support this spending in order to offset the decline that will take place in their spending - public spending to increase to cover private spending.
Ultimately, McRae decides that consumption will be up in the new year. Hear more from our economics speaker.
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