The UK arm of the Customer Relationship Management (CRM) specialist Experian is predicting that the price deflation currently besetting the country’s footwear and clothing sector will diminish this year, the full year decline being 1.5% compared with 5% in 2002.

But the company predicts footwear and clothing consumer spending growth will also  slacken, from last year’s figure of 7% by value to 2.4% this. On this basis, volume growth this year will be 3.9% versus 12.7% in 2002.

Comments Experian Business Strategies’ Associate Director Melanie Lansbury: “Overall, UK spending growth is likely to be down by a fifth this year to 3.8% by value, compared with 4.5% last.”  Next year, consumer spending growth is expected to fall still further to 3.3%, down by about a quarter on 2002.  This reflects the effects of the current economic climate, almost stagnant jobs growth and thinner pay packets resulting from the increases in National Insurance charges this year.”

Based on spending in current prices, clothing will see an annual growth rate of 2.8% in 2003 falling to 2.6% in 2004, compared with 7.5% in 2002.  Other growth rates listed include Textiles (3.8% 2002, 0.5% 2003, 3.7% 2004) and Footwear (3.8% 2002, -1.1% 2003, -1.8% 2004).

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