Report from Lawrence Cutler, SDEA coordinated with Robert Hudson of NAS for the ISO Congress, 28.04.07 2007:

 

Economic Report

UK Shopfittings and Display Industry

 

General economy

 

The UK economy is currently very buoyant.

 

The unemployment rate is 5.5 per cent, up 0.4 over the year.  The number of unemployed people has increased by 151,000 over the year, to reach 1.69 million.

 

Interest rates have increased three times since August reaching 5.25 per cent, with many forecasters expecting another 0.25 per cent increase in the next month or two.  This would take rates to a six-year high.

Meanwhile, inflation increased to 2.8 per cent in February after falling the month before from its 15-year high of 3 per cent.

Retail sales volume

 

The growth in retail sales volume remains robust with an increase of 4.7 per cent in February over the same month in 2006.  Sales by food stores increased by 3.8 per cent over the year compared with 4.8 per cent growth for non-food stores and 13 per cent for non-store retailing, the highest growth for this sector since records began in 1986.

 

Shopfitting and display industry

 

A recent survey of sdea members revealed a level of confidence not seen for at least two years.  42 per cent of respondents reported an increase in business over the previous year with a further 29 per cent indicating a similar turnover to the previous year.  Looking ahead, 68 per cent are expecting business to increase over the next 12 months with only 3 per cent forecasting a downturn.

 

NAS reports that shopfitters too are buoyant at present with projects such as Terminal 5 at Heathrow Airport and the White City Shopping Centre development in London keeping members busy for the foreseeable future.

 

London, 16 April 2007

A comment from the UK management committee member of ISO, Ronald Cohen of Foxbarn Ltd. added, what we of course all know, that even in good times, some companies does not survive, such as recently “Clairs (?)”, Timber taylor’s and more.

 

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