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Despite the economic hardships suffered by UK consumers and the consequent adjustments they’ve had to make in order to survive, recent reports may however suggest that these same consumers are effectively adapting to tough times and may have started shopping again.
Recent data also show that Britons are adapting to the grim economic climate and have stopped putting off purchases indefinitely. The British Retail Consortium said like-for-like sales climbed 1.5% in September which is quite impressive when compared with the same period last year.
Although consumers are still generally skeptical about the economy, especially as the euro crisis lingers, they are however less fearful and cautious than they were a few years ago. And the imaginary hold that seemed to have been placed on disposable income appears to have been removed.
The BRC data also suggestthat consumers have started spending again. This should go a long way in helping to bolster official retail sales figures in coming months.
Furthermore, reports indicate that sales of children’s clothes rose in September, as parents were more active in “back to school” shopping. The wintry weather in mid-September also contributed to an increase in the sales of jumpers and coats.
The Royal Institution of Chartered Surveyors also came out with optimistic news on Tuesday, stating that home sales were in fact looking up, and the housing market would likely see “a slightly stronger end to the year”.
Although house prices have not stopped dropping since the recession, the bearish trend has certainly reduced nonetheless, and house prices have been dropping more slowly in recent times. There seems to be more stability in house prices;and there is a strong possibility they will begin to rise by 2013.
London remains the only region where more surveyors are reporting price rises rather than falls, the organization said chartered surveyors’ expectations for sales had picked up, buoyed by hopes that government initiatives, such as the Funding for Lending scheme, would make it easier for prospective buyers.
Overall, expectations of increased sales seem to have heightened, with about 26% more respondents expecting the number of transactions to escalate by the last quarter of the year.
With this flurry of good news, it is widely expected that businesses will experience growth and may be more willing to spend, which will lead to more employment generation.
Much of the hesitation demonstrated by many businesses to take on risks of any kind may stem from the fact that consumers are not willing to buy products or services like they used to; also, the government may not have been providing more opportunities for businesses to operate.
Whatever the basis of the underlying concerns may be, news of increased consumer spending is only more good news for the economy.
