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gfromls

Prices Up - Trade Down (well'well Down)

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Everyone you talk to (in business) is saying the same thing:

Trade is almost non existent

But suppliers are putting up prices.

What does this mean?

I’m no economist – so can someone explain what the hell is going on.

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What does this mean?

I did half an hour of economics in A-level general studies some time in 1980, so I'm perfectly qualified to answer. It sounds to me like suppliers were afraid to pass on increases in case it suppressed dwindling sales. If those sales have almost dried up anyway there's no point in holding off any longer.

I imagine this is fairly typical of any economic cycle on the way into recession.

Andrew McP

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Everyone you talk to (in business) is saying the same thing:

Trade is almost non existent

But suppliers are putting up prices.

What does this mean?

I’m no economist – so can someone explain what the hell is going on.

suppliers prices are increasing - simple

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Everyone you talk to (in business) is saying the same thing:

Trade is almost non existent

But suppliers are putting up prices.

What does this mean?

I’m no economist – so can someone explain what the hell is going on.

it is gorodn browns miracle economy in which boom and bust has ben eliminated for eternity

i am getting mixed signals at present.

some parts are very quiet and others ticking over reasonably well.

there is real unease in construction, particularly anything involved with spec housing.

there is no doubt that energy costs are starting to bite in disposable income as well as forcing suppliers to pass on costs to try and stay in profit.

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I believe it to be roughly as follows:

Consumers are staying away from the shops because their living costs have gone up so much

Shops are putting their prices up because their costs have gone up so much

Suppliers are charging the shops more because their costs have gone up so much

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Everyone you talk to (in business) is saying the same thing:

Trade is almost non existent

But suppliers are putting up prices.

What does this mean?

I’m no economist – so can someone explain what the hell is going on.

The company is just about to be floated :P:P

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I believe it to be roughly as follows:

Consumers are staying away from the shops because their living costs have gone up so much

Shops are putting their prices up because their costs have gone up so much

Suppliers are charging the shops more because their costs have gone up so much

Shops are not putting their prices up, they are still cutting prices which is why we have low inflation.

Prices of goods are generally still going down, the China effect continues.

If consumers spend less shops will be forced to cut prices even more to entice them to spend.

The shops will struggle as energy costs and other service costs go up but will likely cut workforce numbers before increasing prices.

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it is gorodn browns miracle economy in which boom and bust has ben eliminated for eternity

i am getting mixed signals at present.

some parts are very quiet and others ticking over reasonably well.

there is real unease in construction, particularly anything involved with spec housing.

there is no doubt that energy costs are starting to bite in disposable income as well as forcing suppliers to pass on costs to try and stay in profit.

Don, got any juicy anecdotes, re: new builds ? The amount of empty new build flats in Chester is amazing, especially around station rd / nr. PO sorting office / Canal side. I noticed big sign & land cleared for 190 riverside ones (yet to be built) next to the race course the other day. Bet they delay those.

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Everyone you talk to (in business) is saying the same thing:

Trade is almost non existent

But suppliers are putting up prices.

What does this mean?

I’m no economist – so can someone explain what the hell is going on.

Higher oil prices filtering through the system most likely.

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The way I see it is this. Two forces are battling it out in the world economy. The deflationary force comes from the newly industrialising economies who are becoming the workshop of the world, manufacturing goods with low production costs. The inflationary force comes primarily from central banks who have been inflating the money supply, which pushes up the price of assets like houses and proliferates debt, and from the new economies sucking in raw materials and pushing up their price. I think in the UK (and US) we will get a period of stagflation, ie stagnating production accompanied by inflation, followed by a sharp deflationary spiral. It's scary and confusing.

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  • 302 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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