Russian consumers reluctant to spend even though economy is on cusp of recovery

Moscow

RUSSIAN consumer demand, which came undone quickly during a recession, will take time to put together again.

The pieces do not fit because households continue to embrace thrift even as the rouble tests new highs and inflation at the slowest in history boosts purchasing power. While real wages probably had their fifth monthly gain in December, data due to be published on Wednesday will show that retail sales contracted 3.7 per cent, shrinking for a record 24th month, according to the median estimate of 13 economists surveyed by Bloomberg.