Prepare for pre-recession spend – top economist

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Food manufacturers should prepare for a positive three years ahead, as the changing economy prompts consumers to spend at pre-recession levels, a leading economist has said. 

Two years of deflation, a rise in wages, a dip in oil prices and reduced utility bills would boost consumers’ disposable income, said Roger Martin-Fagg, an economist at Ashridge Business School.

A rise in disposable income would lead consumers to shop for more premium food and drink products, which hadn’t been the case in post-recession Britain, he added.

‘A lot more volatility’

“But, what we do need to bear in mind is that there’s going to be a lot more volatility in the exchange rates, particularly against the Asian, European and US currencies,” he told FoodManufacture.co.uk at the British Frozen Food Federation conference last week (March 3).

Other issues, such as trouble in Russia and a slow-down in China’s economy, had the potential to badly affect the global economy and the UK as a result, Martin-Fagg added.

Listen to the rest of this podcast to hear how Martin-Fagg believes food manufacturers should take advantage of the good economy. 

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