Mixed signals from the UK high street
The CBI has today issued a depressing report on the state of the UK high street with only 31% of those surveyed showing a rise in May against 40% showing a decline in sales. A net balance of -17% compares with a figure of +3% in April although it is far higher than the -40% in January this year. The CBI survey takes a snapshot of the UK high street at any one time and while it can be misleading in isolation (on the upside and the downside) recent trends have been very mixed to say the least.
When you also consider that consumer spending fell significantly in the first three months of 2009, leading to 1.9% reduction in gross domestic product in the UK, this does not bode well for the immediate future. Despite a lull in bankruptcies, many experts fear further culls on the high street as banks grow short of patience and look to crystallise their positions. The lack of liquidity in the money market is also a concern and has affected short-term cash flow for many UK businesses.
After various UK government initiatives it is literally a case of waiting for the investment to kick in and hopefully stabilise and then allow businesses on the high street to grow.
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