Why are UK retailers looking forward to September?
A recent survey by the CBI suggests that UK retailers are very confident that retail sales will grow in September after reporting a very strong August. This suggestion, from the actual retail sector itself, seems very much at odds with economic forecasts for the UK retail market and the UK economy as a whole. So why are retailers looking forward to September?
Even the CBI is concerned about the UK economy and while accepting the results of the survey there is still much caution around. The British Retail Consortium has openly questioned the strength of the retail market in the UK citing the fact that VAT will increase next year, unemployment is rising, disposable income is falling and competition from the online retail sector would appear to be growing. So therefore it is a mystery as to why UK retailers are so confident about September!
However, on the flipside, if September does turn out to be as strong as predicted then this could help to support the UK economy in the short to medium term and potentially help to avoid a double dip recession. Yet again recent surveys and recent data don't seem to correspond with the general view of the UK economy and the prospects for the short to medium term.
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