RSS

Weak spending 'indicates state of economy'

Sep 02 2008

A slowing in consumer spending offers a fair indication of the state of the economy, Capital Economics claims.

The research consultancy remarks that spending is two-thirds of economic activity, with retail sales making up just under half of that total.

Jonathan Loynes, chief European economist for the research analysts, describes retail sales as 'a pretty good barometer' of overall financial conditions and the state of the economy.

'It is affected by changes in unemployment, changes in interest rates, what's happening in the housing market and all of those things at the moment are clearly having a negative influence,' he adds.

The latest figures from the British Retail Consortium show in July the value of retail spending fell by 0.9 per cent on July 2007 - a period which had itself seen slow sales because of wet weather.

Retail spending has also been down on last year in four of the past five months - the worst figures since 2005.
 
Comments

There are currently no comments on this article

Prize Draw

 

Free prize draw!

Smallbusiness.co.uk has teamed up with Avery® Quick&Clean™ Business Cards to offer five lucky readers the chance to win a copy of BBC Dragons' Den James Caan's new book The Real Deal and a pack of Avery® premium heavyweight business cards. To enter the prize draw, simply answer our question here

What would you do with £10k?







Site map

« Expand to view