The first step towards recovery from the economic crisis is spending money, more precisely spending money in the domestic market. UK seems to be moving in the right direction as retail sales keep increasing. This means that people in UK are again willing to spend money.
As British Retail Consortium officials have stated the main reason for this trend might be the rather bad weather in the second half of July. Apparently people are deciding not to go on a foreign vacation, but rather spend their money on home improvement. The extensive discounts have also had a positive effect on sales. The increase could be bigger, but it is somewhat hindered by the rising unemployment. The same trends apply to food and clothing sales. This is nothing strange as I have stated before that in times when people are not able to afford expensive and exclusive items, they rather spend their money on cheaper everyday stuff and with that somewhat improve the quality of life. So this is why sectors like food and clothing are less affected by the overwhelming global economic crisis.
So due to these facts some retailers seem to think that this may be the beginning of the end of recession. But as long as there will be the fear of sudden unemployment and salary cuts the improvement tempo will be fairly slow. None the less this means good news for everyone. It is possible that we have passed the deepest point of the economic crisis. As the stability returns the crisis diminishes. Let’s hope that UK is not the only place where positive things are beginning to show on the horizon.
