Food and fuel stocks stay firm as consumer spending tightens

UK managers are positive on the market despite higher interest rates of 4.75% taking their toll on consumer spending habits. Investment managers at Taylor Young and New Star believe UK corporates are in good financial health, indicated by the fact that companies have been increasing their dividends and buying back shares. According to the groups, the only problem on the horizon is that higher interest rates might impact consumer cyclical stocks. Both groups are cautious on this sector. Nick Rundle, senior investment management at Taylor Young, says: "UK consumers are being squeezed. T...