Gregory Pennington - Unexpected acceleration in retail sales not a assurance of bazaar recovery, say Gregory Pennington

Store this angel in big sizeResponding to the contempo account that retail sales advance enjoyed an abrupt acceleration in July, debt administration aggregation Gregory Pennington (gregorypennington.com) has warned that this should not be taken as a assurance of bazaar recovery, and that consumers should still be analytic to assure themselves adjoin a abeyant abatement at some point in the future.

Despite the Office of National Statistics’ predictions that retail sales advance would abatement by about 0.2%, July in actuality saw a acceleration of 0.8% compared to the antecedent ages – a amount which, according to a Gregory Pennington spokesperson, may alert some to “underestimate the crisis that lies advanced for the economy”.

The abstracts chase June’s sales advance in actuality falling by about 4.3% - the better abatement for several years. But the Gregory Pennington agent says that this artlessly reflects the airy attributes of the retail market. “It’s important to attending at the bigger bread-and-butter picture,” he says. “Inflation is at a 16-year high, costs of active are increasing, and unemployment is ascent – all of which are acceptable to affect the retail bazaar abnormally in the continued run – but the abounding appulse is yet to be seen.

“The retail bazaar has apparent several years of clashing advance – even if the abridgement was actual strong. The rises and avalanche are rarely any bigger than two per cent, which is basal in the arrangement of things, and is apparently coincidental.

“June’s abatement of 4.4% did accession some apropos for the market, but the actuality that it’s gone beeline aback up by 0.8% shows that this was just a decidedly agrarian fluctuation.”

The agent added that chump attention is still necessary, accent by the contempo year-on-year increases in humans experiencing debt problems – which can be partly attributed to ever airy lending and top chump spending.

“Statistics appearance that the amount of humans gluttonous debt advice has been steadily accretion for able-bodied over a decade now – with the a lot of audible acceleration advancing in 2007, if the acclaim crisis began to hit the economy,” he said. “Since problems with debt tend to clarify through over a continued aeon of time, we would apprehend this arrangement to abide able-bodied into 2008 and 2009.

“Realistically, a connected slump in the retail bazaar would in actuality be a acceptable assurance for the economy, back it would appearance that humans are demography the bread-and-butter abatement and accident of accepting into debt actual seriously, as able-bodied as allowance to accompany down inflation.”

The agent went on to say that if humans do acquisition themselves disturbing in the advancing months, they should seek debt advice from an able as anon as possible. “It’s analytic like the abatement we are adverse will be absolutely severe, and we would apprehend humans with absolute debts to ache added than a lot of – not to acknowledgment abounding humans may be affected into debt as money gets tighter,” he said.

“If that is the case, it’s capital you seek debt advice from a able debt adviser. Lenders and consumers akin will feel beneath burden over the next few months, so your debt adviser should be able to advice appear to an acceding that apparel both you and your lender.”

Gregory Pennington (www.gregorypennington.com) are a debt administration aggregation based in Salford Quays, Manchester. They action a advanced ambit of debt advice and solutions, including debt administration plans, debt alliance and IVAs.

Melainie Taylor
Gregory Pennington
Pennington House
Carolina Way
South Langworthy Road
Salford
M50 2ZY
melanie.taylor@gregorypennington.com
0845 056 6480