Jump to content
House Price Crash Forum
Realistbear

C B I: Retail Spending Frenzied In August

Recommended Posts

http://www.tiscali.co.uk/news/newswire.php...y_template.html

Retail sales rise quickly-CBI

30/08/2006 10:50

LONDON (Reuters) - Retail sales growth accelerated to its fastest pace in more than 1-1/2 years in August even after a surprise interest rate hike at the start of the month, a survey showed on Wednesday.
The Confederation of British Industry’s distributive trades survey sales balance jumped to +12 from +7 in July, way above retailers’ own expectations of +1 and the highest reading since December 2004.
Retailers predict a further acceleration in September,
with the expectations balance at +13, its highest since March 2005. Groceries and durable household goods enjoyed particularly strong sales.

:lol::lol::lol:

Wizzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz BANG

http://www.brillig.com/debt_clock/

U.S. NATIONAL DEBT CLOCK

The Outstanding Public Debt as of 30 Aug 2006 at 10:01:15 AM GMT is:

$ 8 , 5 0 7 , 8 4 0 , 1 1 2 , 5 3 3 . 9 5

The estimated population of the United States is 299,402,699

so each citizen's share of this debt is $28,416.04.

If we have 60m people our debt is 1.24T/60m = 20,666 pounds or $39,265. Compared with the US at $28k per head.

Gordon, mate, what HAVE you done???? :o

Edited by Realistbear

Share this post


Link to post
Share on other sites

Hi

As I indicated before, many of my retail clients are having their best few months for over a decade - it is frenzied - one got their winter range in recently and sold out almost immediately - the fashion victims pounced - judging from last year, the stock should have lasted 4 months, not four days - and we're talking typical purchases of 3 or 400 quid for a couple of items there. This has been repeated with my clients, from small boutiques to larger chains, over and over again. It's gone crazy on the high street! A tidal wave of cash!

Edited by gruffydd

Share this post


Link to post
Share on other sites

Hi

As I indicated before, many of my retail clients are having their best few months for over a decade - it is frenzied - one got their winter range in recently and sold out almost immediately - the fashion victims pounced - judging from last year, the stock should have lasted 4 months, not four days - and we're talking typical purchases of 3 or 400 quid for a couple of items there. This has been repeated with my clients, from small boutiques to larger chains, over and over again. It's gone crazy on the high street!

Could this be that most people under 30 have now given up on ever being able to afford a house so they've decided to splash the cash on consumer goods?

Share this post


Link to post
Share on other sites

It's gone crazy on the high street! A tidal wave of cash!

Of course - it's that MEW effect from recent HPI, due to last August's rate cut. As central bankers remind us, rate changes take about a year to work their way throigh the economy, and were starting to see it's full effect.

That same HPI/consumer connection that so "surprised" the BoE last year when it dissapeared due to falling HPI.

Im sure Brown is rubbing his hands with glee at all the extra VAT filling his dwindling coffers.

Share this post


Link to post
Share on other sites
Could this be that most people under 30 have now given up on ever being able to afford a house so they've decided to splash the cash on consumer goods?

Quite possibly... maybe the government have achieved their goal of discouraging the next generation from saving at all.

In which case, roll on the rate rises. Maybe there will be another in September.

Share this post


Link to post
Share on other sites

Hi

As I indicated before, many of my retail clients are having their best few months for over a decade - it is frenzied - one got their winter range in recently and sold out almost immediately - the fashion victims pounced - judging from last year, the stock should have lasted 4 months, not four days - and we're talking typical purchases of 3 or 400 quid for a couple of items there. This has been repeated with my clients, from small boutiques to larger chains, over and over again. It's gone crazy on the high street! A tidal wave of cash!

Absolutely, and all those "SALE" and "70% OFF" signs have suddenly dissapeared and you can hardly get into a shop these days due to the crowds! The queues at the ATMs are longer and the smiles of the people as the rolls of cash pump out reveal how optimistic they are as they rush off to spend it. Let the good times roll because happy days are here again. :D *

_______________

* <_<

Could this be that most people under 30 have now given up on ever being able to afford a house so they've decided to splash the cash on consumer goods?

I have had the same thought. Resignation to defeat, the last breath of the consumer up cycle.

Looks like it s the higher prices that have stimulated the buying frenzy:

http://uk.biz.yahoo.com/30082006/94/uk-con...-rate-rise.html

The CBI said that despite intense competition, retailers have been more successful in passing on the high costs of energy and foodstuffs.
A positive balance of 12 per cent of retailers said their average prices had risen in August.
This is the first time in two years they have been able to make mark-ups stick and respondents expect further increases in the months ahead.

Nothing like a bit of price hiking to catch the attention of the cash-flush sheeple. :)

Share this post


Link to post
Share on other sites
A positive balance of 12 per cent of retailers said their average prices had risen in August.

Bye-bye low inflation, hello 10% interest rates.

Share this post


Link to post
Share on other sites

Hi

As I indicated before, many of my retail clients are having their best few months for over a decade - it is frenzied - one got their winter range in recently and sold out almost immediately - the fashion victims pounced - judging from last year, the stock should have lasted 4 months, not four days - and we're talking typical purchases of 3 or 400 quid for a couple of items there. This has been repeated with my clients, from small boutiques to larger chains, over and over again. It's gone crazy on the high street! A tidal wave of cash!

This has always been the case anyway

I can NEVER get any f***king clothes for work/going out coz as soon as new stock arrives - it's gone...

I HATE shopping

Share this post


Link to post
Share on other sites

Bye-bye low inflation, hello 10% interest rates.

Yup--once inflation has its hold it will grow until eventually contained by IR hikes. It may be out of the tube now in which case Merv will have no choice but to hike even if Gordon keeps fiddling the basket as the view seems to be building that the CPI is no longer credible. Whereas the inflator measure is and the last report said it ws up 1.5% for one quarter.

Share this post


Link to post
Share on other sites

Bye-bye low inflation, hello 10% interest rates.

The Bank of England has proven time and again that it will sit back and dilly dally over rates. I expect no more than one rate rise and that will probably be in a few months. Borrowers are the number 1 priority.

I expect the next set of inflation figures to show more falls as our joke CPI reflects falling petrol prices.

Edited by simon99

Share this post


Link to post
Share on other sites
The Bank of England has proven time and again that it will sit back and dilly dally over rates.

Except they no longer have that option. There's only so long you can pretend that inflation is low and have Joe Sixpack believe you.

With import prices rising and retailers passing rises on to customers because they've cut costs as far as they can, it's game over.

Share this post


Link to post
Share on other sites

Except they no longer have that option. There's only so long you can pretend that inflation is low and have Joe Sixpack believe you.

With import prices rising and retailers passing rises on to customers because they've cut costs as far as they can, it's game over.

or the sheep plan to buy buy buy then enter bankruptcy, i kow 2 girls that live with there parents, 28 29 both have good jobs but plan to leave the jobs to go traveling, one told me iam going to buy as much as i can then go bankrupt. :lol:

Share this post


Link to post
Share on other sites

The Bank of England has proven time and again that it will sit back and dilly dally over rates. I expect no more than one rate rise and that will probably be in a few months. Borrowers are the number 1 priority.

I expect the next set of inflation figures to show more falls as our joke CPI reflects falling petrol prices.

I see September as a bit of a crunch time for the BoE's so called "independence".

If MPC dither at next week's meeting and dont put up rates, IMO it will be very difficult to them to be taken seriously over targeting inflation [as opposed to targeting growth, highstreet spending or Nationwide's "feelgood factor"], as Brown's new doves join the roost next month. They will immediately be voting for holding rates or even cutting, and the media will be full of 'split MPC', 'IRs have peaked' and 'the next movement will be down' stories, fuelling the next stage of the "mini-boom"

Share this post


Link to post
Share on other sites

I will be very surprised if the next set of inflation figures aren't down. It looks like the whole charade will continue, booming house prices, booming money supply, booming mortgage lending and consumer spending, and low interest rates while the BoE dither waiting to see what happens.

Share this post


Link to post
Share on other sites

INFLATION

http://news.bbc.co.uk/1/hi/business/5299006.stm

"Rising prices

The CBI report found average selling prices rose in August for the first time in two years.

"Rising costs for energy and now also for foodstuffs have already caused retailers in certain sectors to start edging prices up," said John Longworth, chairman of the CBI's distributive trades survey panel. "

"Whilst this should not halt sales growth... the rate of growth may drop back."

INFLATION

Economists said that signs of strength on the High Street would keep the Bank of England more biased towards raising the cost of borrowing again.

"This adds further weight to the view that the Bank of England will raise interest rates again in November," said James Knightley, an economist at ING.

INFLATION

http://news.bbc.co.uk/1/hi/business/5299232.stm

The US economy performed better than initially thought in the second quarter of 2006, according to revised data from the Commerce Department.

It now says US gross domestic product (GDP) grew by an annual rate of 2.9% in the three months to 30 June, up from the initial estimate of 2.5%.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.