May 16 2007

Durable goods prove resilient to interest rate hikes

Consumer spending on durable goods in April was up 3.5% but generally spending in Britain's high streets has been flat, according to market research company GfK. As usual, high street sales are losing out compared to the internet which is seeing growth rates of over 50%.

The purchase of home and garden products has offset the slow down in spending on high ticket items for bricks and mortar stores. Spending on high ticket items, such as laptops and flat panel TVs, has slowed on previous months while still seeing double digit growth rates.

James Randall, Commercial Director GfK commented, "It is unsurprising that with recent increases in interest rates to see that in comparison to last year sales of high technology items have slowed, it is only a pity we don't have a soccer world cup every year!"