While most economic indicators are clearly heading south, U.K. consumers continue to hit the shops, showing no signs of retrenchment. Rising financial wealth and steady growth in real disposable income have helped sustain strong consumption growth over the last few years, but the fall in equity value, moderating real income growth, and the threat of rising unemployment suggest that consumer spending could decelerate somewhat going forward. Any serious retrenchment by consumers could well drag the economy into recession.