There has recently been a concerted effort to “talk
up” the economic recovery in the UK.
The housing market has traditionally been used as a
barometer and latest reports show that increased demand for homes has led to the ninth
consecutive monthly increase in house prices, according to the Halifax.
The
mortgage lender said that property prices were up by 0.7% in October compared
with the previous month and 6.9% annually.
The retail sector will similarly provide a good indicator as to the health
of the economy. The run up to Christmas, October through to December the so
called “golden quarter” has always been of prime importance.
Currently wages are flat lining and consumers are facing rising fuel and
utility bills.
Any sustained pickup in demand therefore will be credit driven. Memories
are short and it is likely that consumers will be more ready to take on
additional debt given a sense of comfort from the appreciating prices in the
housing market.
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