Mind – Consciousness – Thought!

Feet and words Past and Future , Choice Concept - business man walking with arrow on the road , Two Yellow Arrows Painted on Asphalt showing different directions

So, what does 2017 hold for you, you and you?  After the Christmas festivities, perhaps you need to replace the dining room furniture or need to refurbish the kitchen. What about the holidays, have you booked yours yet?  Are you still expecting that new salaried position with the elusive pay rise and what if you were to get it, a brand new car? Well, what’s stopping you?  Is there such a thing as consumer apathy?  If there is WHY?

Well, we can start with the increase in oil prices, this has produced price rises at the petrol pumps that is already observable in higher inflation in the States and some parts of Europe.  The price increase of commodities and if oil prices advance, that will boost the consumer price indices even more.

Come April 2017 we have the National Living Wage rise that will increase hourly pay to £7.50.  For the individuals who fall into this category, great news.  However, this generates its problems causing spiralling pressures on prices to consumers.

I think the writings also on the wall; we are all expectant of higher inflation in 2017 than last year. But not at the detriment that jobs and real incomes start to decrease.  Looking ahead at the future position and the demand for the first time housing market to upsurge, we could start to see the expectation of remunerations rising with the certainty of overtime offered and service companies offering extra bonuses.  We need more people in work, offered job prospects with good pay and salary.

The above perception could overhaul these inflationary burdens.  I also have to say that there has not been an increase in shop prices or rents based on the reduction in sterling.  But, remembering that the pound began to decline against the Euro in July 2015, an age ago now. However, shop prices and or rents in December 2016 were still lower than a year previously.

It looks as if much of the effect of lower sterling on the price of merchandises brought from the continent will be kerbed. All thanks to the competitive UK retailers marketplace.  A good percentage of the UK retailers are often unenthusiastic about the future outlook.  Why?  Because they cannot abuse the capacities of the retail sales that are available creating additional pounds the retailers need to offer for quality mark-downs creating greater significance. Also, the Chinese currency has been falling lately, making Chinese producers competitive again for the retail markets enabling retailers to share better discounts with the consumer.

Consumer spending ended 2016 in good form, with retail sales growing at around 6% in volume terms. We can potentially expect that rate to reduce in 2017.  All being possible thanks to some increase in consumer credit.  Significantly the banks now are adequately robust enough to be able to finance more of a purchasers rescue. Many more individuals feel secure in their jobs and may be looking forward to that elusive pay rise, extra overtime or the possible promotion.  In turn driving people forward to commit to higher buying of products like new cars, furniture, kitchens, cookers and even a new home. Consumer apathy reduces, therefore giving people a brighter financial future with increased spending on such things as, long haul holidays or enjoying a meal with loved ones. There is also sensible mortgage availability, with many people wanting to buy a home of their own.

Lastly, The Bank of England were far too negative after the BREXIT vote, because of that we are starting to see many consumers in a reasonably confident mood. They, in turn, are dragging businesses into a more active stance as they wrestle to keep up with the recent demands.


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