The UK Crunch May Not Arrive

The UK Crunch May Not Arrive - at www.moneyweek.com - the best of the international financial media

There are many reasons to be concerned over the outlook for the UK consumer; historically high levels of debt, a stagnant housing market, rising unemployment, and the prospect of tighter fiscal policy in 2006. But the market already knows this and has moved back to pricing in a good chance of another rate cut in the first quarter of 2006.

General retailers have been underperforming, declining year to date, in an upwardly trending market, and the media has again been filled with the Cassandras, bemoaning the decline of the UK consumer, and imminent recession. Such talk has been fuelled by the retailers, overlaying the ongoing consumer slowdown with intense competitive pressures on the high street and continued pricing pressure. Column inches have been filled by quotes from self interested industry bodies, such as the British Retail Consortium, lobbying for aggressive rate cuts.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.