'The lipstick effect': Britons treat themselves as budgets tighten

Beauty products and womenswear sales both all up on last year as shoppers shun expensive household items due to shrinking disposable income

Want to know where the economy is heading? Then read my lips. The boss of John Lewis has pointed to a return of "the lipstick effect" - when a rise in sales of beauty products heralds a consumer squeeze.

With disposable income under pressure, shoppers are holding off on buying big ticket household items like sofas, beds and washing machines. But tough times also encourage shoppers to treat themselves, and history has shown that sales of cheap thrills - from lipstick to takeaway coffee, expensive perfume, skin cream and sparkling wine - can do well in a downturn.

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