How long will the retail bonanza last?
In spite of forecast that UK retail spending would come under pressure around the festive period and the New Year sales may not be as lucrative as many had hoped, the initial signs are that UK consumers are still shopping in record numbers. Unfortunately this cannot last forever due in the main to the fact that disposable income in the UK is still under pressure and a great number are still concerned about their job security in 2010.
However, as we have mentioned on numerous occasions, one major element of any economic recovery in the UK will be consumer confidence and business confidence. At this point in time, against all traditional indicators, consumer confidence would appear to be booming and may well last longer into 2010 than many had expected. Quite where many consumers are getting their income from to spend in the shops remains to be seen, but worryingly there was an increase in credit card spending prior to the festive period, but will this stretch into the New Year period?
A number of the UK population appear willing to spend now and worry later, an action which could catch up with them in the second half of 2010 when bills need to be paid and money needs to be found.
Share this..
Related stories
When will the UK economy return to normal?
There is no doubt that the next few months will be very tricky for the UK economy and there's also no doubt that many people are starting to become very concerned. In the midst of what has been one of the worst economic downturns in living history it is difficult to comprehend how and when the UK economy will return to normal. We have seen the banks bailed out by UK taxpayers, we have seen many re...
Read MoreIs the UK really headed for a double dip recession?
Towards the end of 2009 it seemed as though the UK economy was on the verge of a sustainable recovery which could potentially save the Labour government from defeat at the next election. However, over the last few weeks the situation has deteriorated somewhat and there are grave fears of a double dip recession in the UK which would effectively undo all of the good work done by Gordon Brown over th...
Read MoreBorrowing 'threatens UK economy'
Consumers must rein in their borrowing levels if a downturn in the UK economy is to be avoided, a report has warned.The Ernst & Young Item Club's latest report says that the strong UK economy rests upon shaky foundations, with excessive levels of household debt posing a serious threat.It states that through mortgages, credit cards and other loans, borrowers have racked up £1.3 trillion in debts,...
Read MorePlease concentrate on the UK economy Mr Darling!
While Gordon Brown has been touring the world preaching about economic prowess it now appears that Alistair Darling, the Chancellor of the Exchequer, has now taken on this role within the EU. Despite the ongoing collapse of the UK economy, increased unemployment and substantially weakened fund flows in the financial sector, Alistair Darling is now urging his EU counterparts to help bail out weaker...
Read MoreShoppers flock to the high street
Retail sales figures in the UK have been seesawing for sometime although yesterday saw the biggest attack on the UK high street by consumers for some time. While the likes of Marks & Spencer and John Lewis remain closed on Christmas Day, all of the major retail outlets in the UK were open on Boxing Day hoping to grab the last of the festive spirit. However, despite the fact the UK is currently in...
Read More
