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4th August 2008
Business expert: No recession for the UK this year
Despite reports to the contrary, a group that represents the interests of small retailers in the UK has said that it does not believe the country is heading for a full blown recession.
Richard Dodd, a spokesperson for the British Retail Consortium (BRC), said that the organisation was still confident that the country would avoid a period of negative growth.
Mr Dodd was commenting following the release of the Confederation of British Industry's latest Distributive Trades Survey which showed that many retailers were deeply concerned that their sales volumes had already declined this year and would continue to do so in the coming months.
However, Mr Dodd said: "It is perfectly possible that we will see consumer spending growing more slowly than the overall economy and of course the growth of the overall economy is certainly slowing but we are not expecting to actually see the economy shrink this year or next."
He also added that it was likely that small retailers dealing with luxury items would feel the most impact of any further economic slowdown.
"Customers are very short of spare cash and are reluctant to spend on anything other than essentials," Mr Dodd explained.
"Clothing ... has suffered quite severely along with the big ticket item sectors like furniture and large electrical."
(c) 2008 Adfero Ltd.
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