Which UK sectors are in and out of favour for Premier AM's Birrell?

Consumers under pressure from inflation

Premier Asset Management's chief investment officer and manager of the Premier Diversifed and Diversified Income funds Neil Birrell shares his views on which sectors of the UK market are in and out of favour this month.

In favour: UK discounters The UK consumer is not in a great place. Rising import inflation, a consequence of sterling depreciating post the EU referendum vote, and anaemic wage growth have put pressure on disposable incomes. Since the EU referendum vote, consumer spending has remained resilient but beneath the surface, underlying data suggests all is not so healthy. UK unsecured credit is growing by 10% and the savings ratio has dropped to a ten-year low. The UK consumer is effectively borrowing to maintain their lifestyles, which has concerned the Bank of England enough to force th...