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Nov Retail Sales Plunge At Record Pace -cbi

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Guest consa
LONDON (Reuters) - Retail sales volumes in November fell at their fastest pace in at least 22 years in the run-up to the key Christmas shopping season, an industry survey showed on Thursday.

The Confederation of British Industry's distributive trades survey said its sales balance fell to -35 in November, down from -18 in October and well below retailers' own forecast for -15, marking the lowest since the survey began in 1983.

The pound fell a fifth of a cent against the dollar while interest rate futures rallied, factoring in a slightly greater chance that the Bank of England will have to cut interest rates early next year.

"We believe that interest rates will eventually come down by a further 25 basis points to 4.25 percent," said Howard Archer, chief UK economist at Global Insight.

Retailers were also very pessimistic on the outlook for December, with the expectations balance coming in at -23, the lowest on record.

"Any hopes retailers had of an early Christmas present have been dashed, said John Longworth, chairman of the CBI's distributive trades survey panel and executive director at Asda.

"The consumer spending slowdown is impacting on the economy as a whole and is of real concern to businesses across the board," he said.

http://today.reuters.co.uk/news/newsarticl...TAIN-RETAIL.xml

Edited by consa

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http://newsvote.bbc.co.uk/1/hi/business/4488432.stm

Retail sales 'hit a 22-year low'

High Street sales have fallen to their lowest rate in at least 22 years, according to a survey by the CBI.

Only 17% of retailers reported a rise in sales in November, compared with last year, the business group said.

Shoppers seem to be holding onto their money

Has it not occurred to them that the average person is drowning in debt????

Edited by karhu

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Guest growl

'Retailers were also very pessimistic on the outlook for December, with the expectations balance coming in at -23, the lowest on record.

"Any hopes retailers had of an early Christmas present have been dashed, said John Longworth, chairman of the CBI's distributive trades survey panel and executive director at Asda'

Ha! :D

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hmmmmmmm when do the MPC meet again? Oh yes its next week - amazing co-incidence this report coming a week before hand!

Agreed, utter BS from an over-expanded retail sector. Let them suffer, I say!

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hmmmmmmm when do the MPC meet again? Oh yes its next week - amazing co-incidence this report coming a week before hand!

My thoughts exactly - don't they always do this just before and MPC meeting?

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They are still hanging on to their interest rate cut! They really have not thought that one through. Just the other day the retailers were complaining that their margins were being squeezed by the pound falling against the dollar (it seems that much of the goods they import are traded in Dollars, despite or may be because they are made in China). The break even point on cheap imported goods was $1.65 to the pound!

If UK rates fall much further then the pound will tank, completely wiping out their margins.

Anyway you cut it, retailers are well and truely stuffed. Some are going to join the Gagdet Shop and go to the wall! Shaking out a lot of jobs.

It is getting to the point that no matter what the MPC does, the economy tanks. The markets will decide and the momentum is changing for the worse as far as the economy is concerned.

Edited by FTBagain

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Raise IR's - house prices burst, current waiting FTBers get on the market and release their saved cash for purchasing for their new home :lol:

ok - I know it aint that simplistic - but the sooner this bubble bursts and lending criteria tightened the better.

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I know it’s cruel as people are losing jobs but I’m already looking forward to the bankrupt sales after Christmas

Started saving for a good second hand car, not saving very fast but with the prices failing like snow then it won’t take long before my savings reaches the sale prices

My granddad once told me that he remembered when his saving could not even keep pace with the deposit required to buy a house, silly old fool it must have been one of his bad dreams again.

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This is it. Xmas (despite Dogbox views) retailing WILL be the worst (IMO) in relative terms for over 20 years back to the early 80s. Let's see. Or maybe this is the consumer's last binge before a collective drawing in of necks for a few years. Who knows.

There are insolvencies, redundancies et al coming now I fear and interest rates can do nothing to stop it.

I now really think Winter 2006 is the tipping point for HPs. I just do not see anyone expecting a rosy viewpoint of the economy in Spring!!!

PS and hasn't the pensions issue got everyone all worried of a sudden.

This is IT.

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Started saving for a good second hand car, not saving very fast but with the prices failing like snow then it won’t take long before my savings reaches the sale prices

I start a new job in January with a company car. Do you want to buy mine? ;)

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Guest

This is it. Xmas (despite Dogbox views) retailing WILL be the worst (IMO) in relative terms for over 20 years back to the early 80s. Let's see. Or maybe this is the consumer's last binge before a collective drawing in of necks for a few years. Who knows.

There are insolvencies, redundancies et al coming now I fear and interest rates can do nothing to stop it.

I now really think Winter 2006 is the tipping point for HPs. I just do not see anyone expecting a rosy viewpoint of the economy in Spring!!!

PS and hasn't the pensions issue got everyone all worried of a sudden.

This is IT.

My Dad with his SIPPs are going to save the property market in spring. Don't worry.

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50% rise in business rates!!! People need to spend huge amounts more just to keep the shops in business.

Don't forget CPI is 2.5% folks. :angry:

Public urged to save shops from meltdown

http://www.thisislocallondon.co.uk/news/he...om_meltdown.php

This follows a decline in business for many stores across the town centre, which is seen as a national trend affecting other rural towns.

The climate has been worse this year due to a 50 per cent rise in business rates forcing some stores to move out and others to consider selling up.

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Falling sales added to the rise and rise of on-line shopping makes for a lot of redundancies. You don't need shop assistants in an on-line store (to state the bleeding obvious).

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Hi,

Ahhh, that'll be the Christmas runup then, the traditionally strongest retail business period of the year, when some retailers can make a third or more of the annual revenue. I am still waitig to find out what the 'miracle' bit of Gordon's new miracle economy is.

Boomer

Edited by boom_and_bust

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Raise IR's - house prices burst, current waiting FTBers get on the market and release their saved cash for purchasing for their new home :lol:

ok - I know it aint that simplistic - but the sooner this bubble bursts and lending criteria tightened the better.

I think you make a good point. Get the pain over with and the housing market will recover - and people will start spending again. I wonder, if house prices went down say 25% across the board, how many people would be in negative equity. Not that many I imagine.

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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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