Though the warm weather, World Cup and royal wedding have all recently provided the UK economy with a much-needed lift, experts have warned that the nation’s finances are still recovering slowly after a sluggish start to 2018.
Earlier in July, for instance, the Royal Institute of Chartered Surveyors said that despite more properties being put up for sale in the past couple of months, the housing market is likely to remain stagnant for the foreseeable future.
In addition, whilst consumer borrowing is predicted to pick up in the third quarter of 2018 if the Bank of England’s (BoE) most recent credit conditions survey is accurate, the report also stated that there was ‘a significant increase in default rates on credit card loans’ from April to June this year.
This potentially signals that budgets could soon be under strain, particularly when taking into account that the BoE is apparently considering further interest rates rise.
The Bank’s interest rate setting committee has approved an increase in rates, with the cost of borrowing ultimately potentially being elevated above the level set since the financial crisis. As a result, the BoE has been warned of the risks of inflationary pressures, weak wage growth and a decline in consumer spending throughout the country. Regarding the latter, as reported by Walsh Taylor in June, it is no secret that retailers are struggling from a drop in sales.
Having helped hundreds of businesses across Yorkshire and the North East over the past decade, Walsh Taylor naturally like to keep up to the date with ongoing industry developments and hope to see some promising news soon.
If you too are experiencing financial problems in the midst of the economic downturn and want clear, confidential advice on what options are available to you, please feel free to call 03300 244 660.