in consumer spending is likely to follow. Higher interest rates
will increase the cost of consumer debt repayments, primarily
mortgages. However, this is likely to have a limited impact
according to the Bank of England.
spending will also be constrained by the reduction in business
spending. As businesses reduce spending employment growth will
slow as will wage growth. With less money in their pockets the
consumer will stay at home, rather than spending on the high
spending less on goods and services, those that supply those
goods and services will have a reduction in turnover. With consumers
spending less on goods and services these suppliers will also
see reduced turnover. Lower turnover cause firms to fold or
reduce costs; inevitably job cuts will be part of this process.
will this all come to a head? Most analysts suggest that 2008
will be the crunch point when the various factors come together
to produce an economic slowdown. Expect to feel the pinch wherever
you work, there are unlikely to be many sectors that don’t
see an impact.
warning in hand I would suggest knuckling down and making sure
your boss realises that you’re indispensable, even when
business is bad! 2008 is going to be a tough year try to limit