Who’s Feeling the Pinch?
House Sales
It isn’t just the estate agents feeling the pinch. There are a number of trades which rely on house sales and each is beginning to feel the problem already. Trades suffering include: Removals, Conveyancing Departments, Property Developers, Building and Construction companies and even garden centres. Take a look at ‘House Drop Should Be Alarm Call’ for Cornish accountancy firm ‘Bishop Fleming’s’ view on it.
High Street Retail
Although May saw record sales growth in the retail sector there is no getting away from the fact that high inflation will eventually drive consumers to cut their spending on non-essential items such as impulse buys, retail therapy purchases, gadgets and beauty treatments. Industries likely to feel the hit include: phone shops, electrical retailers, independent beauty product retailers, clothing stores and accessory stores. Check out this report from the BBC to find out more: ‘Sales Remain Flat on High Street’.
Nights Out and Nights In
In a survey conducted by leading financial gurus, Motley Fool, they found that 89% people were looking at making cutbacks on ‘non-essential items’ with 67% of those people listing ‘Nights Out and Takeaways’ as the top thing on their list of non-essentials. Bad news for businesses in the pub or food trade including takeaways, night clubs, restaurants, cinemas and coffee shops . Check out the Motley Fool guide to ‘Cracking the Credit Crunch’ for more information on how consumers are dealing with the credit crunch.
Holidays and Travel
Although the big travel companies are telling us everything is all right in the travel industry, key analysts are already saying that the big impact won’t be felt until 2009. Whatever side you’re on you can’t fail to ignore that in the same Motley Fool survey we quoted for ‘Nights Out and Nights In’ 49% of those looking to cut back on their non-essential spend included ‘Cheaper or Fewer Holidays’ on their list coming in at number 4 overall. To read one business analyst’s view on this check out – ‘Is Holiday Travel Recession-Proof?’ .
Tags: building, construction industry, credit crunch, high street retail, holiday industry, housing market, recession, travel industry