International recruitment for British jobs Please ring 07977 131389

News

UK economy in the eye of a tornado?

Discretionary spending is contracting as people squirrel away cash or reduce debt in these uncertain times. We could well be in the eye of a tornado economically.
 
Next, the fashion retailer, has reported a "noticeable cooling" in demand on the high street since early May.
 
Meanwhile, Carpetright the floorcoverings retailer that is seen as a barometer of the health of the consumer economy, warned that demand across Europe is subdued: "We remain cautious about the outlook for consumer spending for the balance of the year." said Lord Harris, the Chairman.
 
With public sector cuts yet to hit and the associated redundancies not yet made and consumer confidence down there is no fairy godmother of demand so the way forward is down.
 

Author: Chris Slay 

Conflicting growth signals

Britain's services industry grew at its slowest rate in 13 months in July, a survey showed today and expectations for the sector barely picked up from last month's sharp fall as concerns over spending cuts persisted.
The government presented an emergency budget in June containing sweeping austerity measures designed to tackle Britain's bulging budget deficit, which is likely to translate into less business for the services industry so this comes as no surprise.
Employment in businesses such as restaurants, hotels and financial services pointed to contraction in July after minimal growth in June.
The rate of inflation fell slightly for both prices charged by firms in the service sector and for their input costs such as wages. That may offer encouragement to the Bank of England, which has held rates at record lows while keeping a close eye on stubbornly high inflation. Greater food price inflation is likely to hit towards the end of the current quarter.
Growth in Britain's manufacturing sector eased slightly in July, with euro zone wobbles weighing on exports, but the headline figure still beat forecasts suggesting buoyant growth. However if that is the case why are a record number of firms investigating redundancy options?
Something doesn’t ring true.
 
Author :Chris Slay

  

Syndicate content