Recession over Soon

wymondham

kje wrote: »

Are consumers really going to go out on a spending spree just because they're saving a few quid on VAT ? That's, even, if the saving is passed on. I'd much rather continue buying the essentials that I normally buy and not spend any extra money that I don't need to spend.

very true ... now, if the government had a 'joe public' in with their meetings who sees what goes on in real life then maybe they would see what a lame move this would be and how little effect it's likely to have....

Just when you think they might get a grasp of the the problems, they come up with more sticky tape idea's like this! - leave things alone to happen as they must!

kennyboy66_2

ad9898 wrote: »

I take no pleasure from saying this, 2009 is going to be one of the worst years ever, equaling anything that the Great Depression had to offer. .

An excellent use of litotes and hyperbole in one sentence.

Well done.

southernscouser

Titan_Uranus wrote: »

I went through the 90's [recession] and didn't even notice...last couple of months i can notice the down turn in consumer spending.

How do you 'notice' it though? :undecided

I know we get fed it through media (and I'm not denying it's not happening), but how do you actually witness a down turn in consumers spending other than your own?

Could it be a case that with more media outlets available it seems more noticeable this time?

lynzpower

I think commercial "property values" started murdering the high street a long while ago.

The dvd alalogy is a good one- the interet retailers can have a dirt cheap warehouse wherever, no uniforms, cheap staffing costs if they locate in a "low employment area" low overheads, on the base price. No wonder its more expensive to buy DVDs in the likes of HMV, who have to have a presence on the high street whether they are busy or dead.

How do you 'notice' it though? :undecided

I know we get fed it through media (and I'm not denying it's not happening), but how do you actually witness a down turn in consumers spending other than your own?

Could it be a case that with more media outlets available it seems more noticeable this time?

I dont know about where you are SS, but I witness it every day with the amount of shops that are closing down. The main "types" Ive seen so far is the estate agent ( obviously) " food & wine corner" shops furniture shops & DIY ( independents) and,( and Ive noticed A LOT of these) coffee shops/ sandwich bars/cafes. Also seen a few "gift" places, you know the ones that sell retro style tea trays & overpriced candles- kark it.

EDIT- just remembered Ive seen a coupole of homebase/ B&Q places go. Other large chains looking very wobbly- Ive seen a couple of closed down homebase stores on my travels- dolcis went not long ago/ rosebys too. Woolies could be on the way out?! personally Id be surprised to see River Island & BHS survive this downturn.

Im in london where apparently youd think they be most likely to survive but im seeing loads shutting up shop.

kje_2

How do you 'notice' it though?

I'm old enough to remember the last recession and there are similarities emerging. Shops, bars and restaurants going up for let. They have no takers and are then boarded up. Not sure if it's down to a drop in consumer spending yet but it maybe investors pulling the plug in the expectation of a serious downturn. Certainly, in cities such as Leicester and Nottingham there are more and more premises standing empty or being boarded over.

SingleSue

I personally didn't have much grief from the last recession (apart from buying a house which then continued on it's downward trend). We still brought things as usual and couldn't understand why everyone else was moaning but then I was on a very good salary.

I did however notice shops etc closing down and trade falling off a little at work and I was made redundant twice during it but walked straight into other jobs usually with a pay increase.

This time however, as money was already tight and every penny counted (literally!), I have felt the ramifications of price increases so much more and contrary to the last recession, I am struggling to get employment anywhere as everyone is pulling in their belts.

moanymoany

kennyboy66 wrote: »

An excellent use of litotes and hyperbole in one sentence.

Well done.

I learnt that at school!

Davesnave

DW was at work today in an up-market establishment where everything is individually priced. The staff were moaning that all stock would need re-pricing if AD drops the VAT by 2.5%. That's how to help small businesses of course; give the workers a totally unproductive task re-printing thousands of labels!

chewmylegoff

wymondham wrote: »

With the reduction of 2.5% on VAT, albeit temporary rumoured to be announced tomorrow, does anyone think this will really make any difference at all and get us to change our mind, improve our confidence and start spending again??? (personally speaking, no chance!)

http://news.bbc.co.uk/1/hi/uk_politics/7744273.stm

no, might make a bit of a different to companies' bottom lines, but they are unlikely to pass on the 2.5% reduction - shelf price will probably stay the same.

even if they do reduce their prices, it's hardly noticeable. i used to get 2% cash back on my credit card. i never bought anything that i wouldn't have bought before, just because it was 2% cheaper. i didn't buy less when the 2% deal ran out.

Generali

Taiwan is giving shopping vouchers to the citizenry worth very roughly GBP100 each.

HK is discussing how to get the punters out spending again.

The big problem the UK faces is that GBP1 in extra cash in the average British pocket leads to 33p being spent on imports so pumping cash into the UK economy just kinda leaks away.