Very often the best indicators are the least sophisticated. The UK economy remains in a very fragile state – the clearest evidence of this can be seen as you walk down any High Street.
The rising number and popularity of charity shops tell underscore that many families are struggling whilst at the same time the spectre of Administration looms large.
With many people continuing to struggle with debt and job insecurity it is hard to imagine a return to the heady days of consumer excess.
As the knock on effect percolate back down the chain many businesses will suffer. External factors by definition are difficult to handle but at the same time in-house disciplines can at least provide some insulation.
Cash-flow will be very difficult to manage over the coming months so as always strict governance of Debtor and inventory control will provide some measure of comfort.
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