The double dip recession continues to bit in the UK. Retailers have suffered from a wetter than normal summer together with reduced sales during the Olympic Games. Fears over travel congestion led to very few people commuting into Central London during the Games. The West End was described as a ghost town in August and provided further misery to retailers and small businesses in the City Center. Results would have been worse but for an influx of Chinese visitors over the summer generating increased sales of luxury goods.
A downturn in the Housing market in August provides evidence of further credit tightening by the banks and reduced consumer spending in the UK. The prospect of increased fuel and commodity prices is likely to place greater strain on the disposable income of consumers. Building contractors are having to tender for work at rock bottom prices in order to win new clients in an increasingly competitive environment.
Economists are predicting that the UK is destined to undergo a period of low growth and low interest rates for several years from now. UK companies will need to consider exporting to emerging markets in order to win new business.