January retail sales worst in 15 years
In a bitter blow for hopes of a strong recovery in the UK economy it has been revealed that retail sales in January were the worst for 15 years. While headline sales increased by 1.2% year-on-year, the lowest increase since the survey began in 1995, actual like for like sales were down 0.7%. This compares to a year on year increase of 6% in December and a like-for-like increase of 4.2%. So what is next for the UK economy?
Analysts had expected a 3.3% increase in retail sales in January and a 0.5% increase in like-for-like sales. The British Retail Consortium, the association which produced the survey, is now very concerned about the short-term outlook for the UK retail market with the growing possibility of a double dip recession. It seems as though the combination of extreme winter weather, a rise in VAT and less aggressive discounting by UK retailers came together to give a nightmare scenario for the sector.
As we saw yesterday, with the decline of Ethel Austin, many retailers in the UK are on the verge of collapse with cash flow, debt and profitability causing major problems. When you also add in the fact that UK banks are unwilling to take undue risk in bailing out companies there is the potential for a further decline in the UK retail market which could push the UK economy back towards a double dip recession.
Share this..
Related stories
Irish economy is suffering more than most
The International Monetary Fund (IMF) has this evening issued a report suggesting that the Irish economy has been worst hit by the global economic downturn and will suffer a prolonged recovery period. The IMF also believes that the Irish banking sector will report losses of around £30 billion which will take some time to recover and see a very different Irish banking sector in the future.
...
Thomas Cook set to take a £20 million swine flu hit
While the popular press has taken swine flu off the front pages, at least for the time being, Thomas Cook has today announced that the company will be forced to take a £20 million hit due to swine flu issues in Mexico. However, with many experts predicting a second phase of swine flu infections towards the end of 2009 the situation for the travel industry could get worse before it gets better.
First time buyers need 26 years to save for deposit
22/01/2015 In London, it takes on average 26 years for a family to save up a deposit for their first home, according to a report from housing charity Shelter. The report also showed that couples without a child on average save for over 13 years for a house deposit in London, and for single people this took up to 29 years. Nationwide, it would take a couple with children around 12 years to...
Read MoreRetail sales rise discounted by markets
News that UK retail sales grew by 1.2% between July and August has been largely discounted by the financial markets which have more important things to worry about in the short term. The figures have been certified by the Office for National Statistics who claim that unexpectedly high sales of clothing and footwear are behind the rise. But where is the money coming from?
Whenever...
When did you last move your savings account?
Despite the fact we have been talking about UK savings rates falling for the last few months, when was the last time you actually looked at your savings account and considered whether you are getting the best deal for your money?
The truth is that the vast majority of UK consumers are highly unlikely to even know what their current savings rate is and how much interest they're savin...