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Blood On The Shop Floor

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Blood on the shop floor as retailers report sales falling at the fastest rate since records began

The fragile state of consumer spending was underlined yesterday as the CBI's latest survey of the retail sector showed sales volumes falling at their fastest rate in the report's 22-year history.

The survey will worry the Bank of England, which cut interest rates last month and has said it expects consumer spending - which accounts for two-thirds of the economy and has been its main driver for several years - to recover in the second half of the year.

http://money.guardian.co.uk/news_/story/0,...1580581,00.html

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Only if debt burdens fall..

Which they are not going to.

If house prices stay the same then it will just get worse..

each new purchase.. each new entrant to the market will take on debt that they will struggle to support and the economy can't..

Also.. the frenzied buying of two years ago at the peak cost of homes also matched the long term lowest intrest rates..

People taking out 2 year fixed term at 3.5% are now finding their mortgages hitting 4.9%...

as I keep posting here... (sorry to get repetitive..) but in august alone 200,000 remortgaged at this higher rate the average cost to them was an extra £1358 a year (the average mortgage was £97,000)

So thats going to help the economy..

£1358 X 200,000

Is a cost to the greater economy of £271,600,000 in extra interest paid.. generated by one month of remortgaging..

just a months worth..

Will the same re-mortgage this month..?

lets make that a years worth... times it by twelve..

£3,259,200,000.. extra intrest payments this year...? and thats just on those remortgaging..

No extra debt.. that is an increase in cost of debt

Edited by apom

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John Coleman, chief executive (House of Fraser), said: "We don't expect gangbusters trade over Christmas but it is inconceivable that it will carry on like this. It would be unparalleled for spending over Christmas to be down two years running."

I cannot wait to hear what Mr Coleman says after Christmas! :D

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I cannot wait to hear what Mr Coleman says after Christmas! :D

Says the CEO of a firm where the 4th (or possibly even the 5th) sale this year begins today

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The survey will worry the Bank of England, which cut interest rates last month and has said it expects consumer spending - which accounts for two-thirds of the economy and has been its main driver for several years - to recover in the second half of the year.

Does that mean 2006?? :unsure:

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The fragile state of consumer spending was underlined yesterday as the CBI's latest survey of the retail sector showed sales volumes falling at their fastest rate in the report's 22-year history.

The 22 year old comparison was flagged up on News at Ten last night. That remark followed footage of an 82 year old man getting roughed up at the Labour party conference during Jack Straws' speach on democracy :o

Love the way some of the stewards were shoving the camera crew around ( they keep filming). Perfect own goal !!

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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