New numbers from the Office for National Statistics (ONS) showed an increase in retail sales for January, compared to December 2011. Kate Davies, Head of UK Retail at the ONS, said that the growth had been expected.
“All sectors are experiencing some growth when you look year-on-year. In particular the household goods sector has risen from where it was previously, it's ended a long run of contraction. The most prominent driver behind this growth comes from the non-store retailing sector [mail order and internet] but also from food stores and clothing stores.”
Whilst the figures were positive the Chief of the Bank of England, Sir Mervyn King, warned that although the UK is unlikely to hit another recession, growth is predicted to be slow and fluctuate.
“The fiscal consolidation and tight credit conditions at home and the weakness of our major overseas trading partners are acting as a drag on growth.
“The underlying need for repair of balance sheets means that the path of recovery is likely to be slow and uncertain. For much of this year, there is likely to be a zigzag pattern of alternating positive and negative quarterly growth rates.”
Sir Mervyn acknowledged that some businesses had recorded a positive start of the year but highlighted that the fragile economic climate meant that this trend may weaken through the year.
He also expressed sympathy over the inflation’s impact on people’s savings, stressing that he understood the frustration over the lack of growth but said that this was a natural consequence of the financial climate.
“These are consequences of the painful adjustment prompted by the financial crisis and the need to rebalance our economy. Unfortunately there is no easy remedy.”
For jobseekers January will have been a relatively good month, compared to previous ones, as some businesses were able to recruit more staff. However, the fragile financial climate is still leaving many potential employees unengaged and many of those currently employed fear that they will be made redundant.
More on this story:
Are you looking for expert employment law advice?
No comments:
Post a Comment