The latest Norwich Economic Barometer has been published. It highlighted that the Government posted its first budget surplus in July and income from tax receipts grew by 5.3% according to the Office of National Statistics (ONS). The continued strength of the consumer goods sector was offset by a sluggish UK manufacturing sector, which confirmed inthe latest Chamber Quarterly Economic Survey.
The UK domestic market remained the main source of new order growth, as the level of export business decreased. Companies are linking reduced overseas demand to several factors including: the sterling exchange rate; weak sales performance; the Euro Zone; and the slowdown in China.
According to the ONS there has been a 6% rise in the use of zero-hours contracts, although the ONS has said this is “not statistically significant”.
August showed that Britain’s retailers recorded the worst slump in sales since November 2008. Retailers across all sectors from lifestyle and fashion to homewares all recorded lower sales than the previous year.
