What Will Tomorrow Bring?
You know business is watching sales figures and freaking out as consumers continue to rein in spending in the face of tougher financial times. And even retailers that are claiming growth, it is not nearly what was projected or anticipated.
It is a fact, times are getting tougher for the average UK consumer. Money is harder to borrow, the cost of everything is going up and hope for a brighter future is dim. Even the government is trying to set expectations of a crash now. They've certainly been sounding the warning bells.
Warning signs abound where ever we look. Recent measurement of Gross Domestic Product (GDP) was zero per cent, experts at Grant Thornton are warning that consumers are earning less than the debt they are accumulating, fuel prices are rising, and property values are falling. Even car sales have crashed and fallen to their lowest levels in 40 years, an indication that consumers are losing confidence in the economy.
A natural knee jerk reaction as times get tough is for people to turn more and more towards credit cards to make it through the month. This approach is great for staying registered in denial but rubbish for actually improving your financial situation. Going further into debt does not get you out of debt.
Top brand car maker Aston Martin only sold 19 cars in August. That's a reported 67% drop in sales. These high flying brands are a certain indication that the financial crisis, that's what it is, is hitting everyone. Lose purse stringed consumers that splurge for high priced items don't close the purse unless they are worried about tomorrow.
So what does that mean for middle income families? Actually, nothing good. Middle income families and especially those that own and run small businesses have already noticed a slowdown in income. Many small businesses will fail and many families will see their household incomes drop.
Salaries and jobs are created by consumer spending. Consumers give their money to retailers who in turn rent space, hire employees, move goods, buy items from manufacturers, etc. Without the lose wallets of British consumers, the pillars upon which the UK economy are built upon will start to crack.
News out today shows just how consumers can't find a respite from steadily increasing life costs. The Telegraph reports that chicken, ham, rice, croissants, and mayonnaise have increased more than 40% in cost and that the average family that spends £100 a week on a trip to the supermarket will need to spend £432 more this next year just to buy the same goods.
So what can consumers do? The answer, shed debt. The more debt that is eliminated the easier it will be to glide through tough times with only the expenses of necessities to pay for.
It is a fact, times are getting tougher for the average UK consumer. Money is harder to borrow, the cost of everything is going up and hope for a brighter future is dim. Even the government is trying to set expectations of a crash now. They've certainly been sounding the warning bells.
Warning signs abound where ever we look. Recent measurement of Gross Domestic Product (GDP) was zero per cent, experts at Grant Thornton are warning that consumers are earning less than the debt they are accumulating, fuel prices are rising, and property values are falling. Even car sales have crashed and fallen to their lowest levels in 40 years, an indication that consumers are losing confidence in the economy.
A natural knee jerk reaction as times get tough is for people to turn more and more towards credit cards to make it through the month. This approach is great for staying registered in denial but rubbish for actually improving your financial situation. Going further into debt does not get you out of debt.
Top brand car maker Aston Martin only sold 19 cars in August. That's a reported 67% drop in sales. These high flying brands are a certain indication that the financial crisis, that's what it is, is hitting everyone. Lose purse stringed consumers that splurge for high priced items don't close the purse unless they are worried about tomorrow.
So what does that mean for middle income families? Actually, nothing good. Middle income families and especially those that own and run small businesses have already noticed a slowdown in income. Many small businesses will fail and many families will see their household incomes drop.
Salaries and jobs are created by consumer spending. Consumers give their money to retailers who in turn rent space, hire employees, move goods, buy items from manufacturers, etc. Without the lose wallets of British consumers, the pillars upon which the UK economy are built upon will start to crack.
News out today shows just how consumers can't find a respite from steadily increasing life costs. The Telegraph reports that chicken, ham, rice, croissants, and mayonnaise have increased more than 40% in cost and that the average family that spends £100 a week on a trip to the supermarket will need to spend £432 more this next year just to buy the same goods.
So what can consumers do? The answer, shed debt. The more debt that is eliminated the easier it will be to glide through tough times with only the expenses of necessities to pay for.
