Liz Truss ‘precipitated shock increase in lipstick gross sales’ | Politics | News | EUROtoday

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Liz Truss‘s mini-budget might have inadvertently precipitated a increase in lipstick gross sales, an evaluation reveals.

The former prime minister’s spending plan was essentially the most radical in current British historical past, with tax cuts funded by borrowing regardless of warnings concerning the impression on inflation, which was already pushing double digits forward of Ms Truss’s premiership.

Within days of former Chancellor Quasi Quarteng revealing the plans in Parliament on September 23, 2022, monetary markets have been spooked, the pound plummeted and the Bank of England was pressured to bail out pension funds.

Experts at international funds service Klarna now say the financial turmoil unleashed at the moment might have triggered a “lipstick effect”.

In the aftermath of the September 11 terror assaults, then Estée Lauder chairman Leonard Lauder noticed an uptick in lipstick gross sales.

He concluded merchandise reminiscent of lipstick have been a great gauge of an financial system, with purchases of little luxuries getting a lift throughout slumps.

According to the authors of the Klarna examine, rising gross sales of lipstick can point out recession is on the best way. Experts on the international funds service crunched gross sales information to see if there have been any patterns.

They discovered that within the two months after Ms Truss’s mini-budget lipstick gross sales as a proportion of whole gross sales made through Klarna elevated by 48 p.c.

After reaching a peak in November 2022, lipstick gross sales fell steadily for six months, whereas shopper confidence was steadily rising, in response to Klarna.

As the UK entered a recession and shopper confidence began to falter from July 2023, lipstick gross sales grew in 5 of the next six months.

There “definitely” appears to be a counter-cyclical factor to lipstick gross sales, in response to the funds and procuring service.

A Klarna spokesperson instructed “While the Liz Truss mini-budget was disastrous in many ways, it does seem to have given lipstick sales a boost.”

Klarna famous that in January and February this yr, lipstick gross sales fell by eight p.c, suggesting there could also be good financial information forward, information which can be of some cheer to Chancellor Jeremy Hunt.