Consumer spending may be hit by inflation in 2019

Singapore

REAL private consumption next year is likely to rise by 4 per cent amid real wage growth and a tight labour market, but consumer spending and sentiment may be weighed down by the threats of rising imported inflation.

That's the prediction of a Fitch Solutions Macro Research report published on Wednesday. The projected 4 per cent increase in real private consumption would be an increase from the 3 per cent for this year.

It is likely to outstrip Fitch's forecast of 2.9 per cent real GDP (gross domestic product) growth for 2019, down from an estimated 3.3 per cent in 2018. The report said reasons for the slower growth in 2019 come from prolonged trade conflict between the United States and Ch…