The International Monetary Fund (IMF) has indicated that the credit crunch shows no sign of getting better. They have said that the fall in house prices and the slowing economic growth is hitting credit available to people.
They highlighted that banks are under more pressure and further cutbacks could lead to the slowdown getting worse.
It was also claimed that growing markets like China would be impacted by the credit crunch eventually.
The longer the credit crunch goes on the more effect it will have on people so lets hope the economy will turn around and hope the outlook will be bright.
Tuesday, 29 July 2008
Monday, 28 July 2008
Camping Prospers as Credit Crunch kicks in
The BBC today has claimed that the Camping industry in Wales is flourishing with the effects of the credit crunch.
As families tighten their belts they can’t afford to go abroad and spend lots of money on a holiday so are opting for a cheaper alternative in camping. Instead of costing a family thousands they can have a weeks family camping for as little as £105.
Welsh camping sites have said that they have healthy bookings for the summer season and camping equipment is blooming. Dave Beynon, of Three Cliffs Bay Holiday Park on the Gower, said that he was turning away 100 customers a day as there is simply not any room left on the campsite.
Another campsite manager suggested that they have 60 per cent more campers this year than last and this has been put down to the credit crunch.
So why not pick up your tent, grab your sandals and head down to your local campsite for a fun, friendly and cheap holiday.
As families tighten their belts they can’t afford to go abroad and spend lots of money on a holiday so are opting for a cheaper alternative in camping. Instead of costing a family thousands they can have a weeks family camping for as little as £105.
Welsh camping sites have said that they have healthy bookings for the summer season and camping equipment is blooming. Dave Beynon, of Three Cliffs Bay Holiday Park on the Gower, said that he was turning away 100 customers a day as there is simply not any room left on the campsite.
Another campsite manager suggested that they have 60 per cent more campers this year than last and this has been put down to the credit crunch.
So why not pick up your tent, grab your sandals and head down to your local campsite for a fun, friendly and cheap holiday.
Friday, 25 July 2008
The rules of the credit union to be reformed
The government are to bring new measures in next year to strengthen the finances of credit unions.
The measures look at allowing credit unions to broaden their membership and pay interest on members’ deposits.
Credit unions typically serve people on low incomes and are small-scale savings and loan co-operatives.
There are about 600,000 members in the Great Britain between 535 credit unions.
It is the believed the government wants to help credit unions expand so that people in financial difficulty do not go to loan sharks.
Some of the proposed changes are highlighted below:
• Credit unions will be able to charge for their services i.e. the issuing of cheque
books.
• Groups of people will be able to join and not just individuals.
• Interest will be paid on savings, which should attract more people to use credit unions.
The measures look at allowing credit unions to broaden their membership and pay interest on members’ deposits.
Credit unions typically serve people on low incomes and are small-scale savings and loan co-operatives.
There are about 600,000 members in the Great Britain between 535 credit unions.
It is the believed the government wants to help credit unions expand so that people in financial difficulty do not go to loan sharks.
Some of the proposed changes are highlighted below:
• Credit unions will be able to charge for their services i.e. the issuing of cheque
books.
• Groups of people will be able to join and not just individuals.
• Interest will be paid on savings, which should attract more people to use credit unions.
Thursday, 24 July 2008
Credit crunch not effecting businesses spending on IT
Businesses are seemingly not being affected as badly as first thought by the credit crunch as they continue to spend on IT.
The number of UK technology suppliers issuing warnings on their profits as halved in the second three months compared to the previous three months. However, other companies such as housing and finance are struggling with the challenges faced by the credit crunch.
UK suppliers of IT software, hardware and equipment issued 12 profit warnings in the second three months of the year compared to 20 in the first three months.
IT suppliers seem to have been helped by the fact that a lot of large firms are half way through long term IT projects which could take a number of years to complete. Similarly IT investments are seen as business critical by small companies. It is clear to see that the credit crunch is not affecting IT organisations as badly as other industries.
The number of UK technology suppliers issuing warnings on their profits as halved in the second three months compared to the previous three months. However, other companies such as housing and finance are struggling with the challenges faced by the credit crunch.
UK suppliers of IT software, hardware and equipment issued 12 profit warnings in the second three months of the year compared to 20 in the first three months.
IT suppliers seem to have been helped by the fact that a lot of large firms are half way through long term IT projects which could take a number of years to complete. Similarly IT investments are seen as business critical by small companies. It is clear to see that the credit crunch is not affecting IT organisations as badly as other industries.
Wednesday, 23 July 2008
North firms value wiped by £20bn
More than £20bn has been wiped off the value of the North East’s top 40 companies in the last year. This reflects the effect that the credit crunch is having on our region.
An approximate total market capitalisation fell from £92.15bn to £69.7bn in June this year. This would show a deterioration of 24.3% and is a clear indication of the effect that the credit crunch is having in the North East.
There were just five companies in the North East that have shown a positive share price return in the six-month period. These are mostly made up of manufacturing companies or work in the oil and gas or energy sectors.
It is certainly now clear that the credit crunch is going to have a major effect on local businesses and there is no more important time to stick together as a region and get through the potential difficult times ahead.
An approximate total market capitalisation fell from £92.15bn to £69.7bn in June this year. This would show a deterioration of 24.3% and is a clear indication of the effect that the credit crunch is having in the North East.
There were just five companies in the North East that have shown a positive share price return in the six-month period. These are mostly made up of manufacturing companies or work in the oil and gas or energy sectors.
It is certainly now clear that the credit crunch is going to have a major effect on local businesses and there is no more important time to stick together as a region and get through the potential difficult times ahead.
Tuesday, 22 July 2008
Forecast Gloomy for UK economy
The outlook for the UK economy next year is looking gloomy as businesses begin to lose confidence. Due to risen living costs it is expected that growth will be no more than 1% in 2009 according to the Ernst and Young item club.
Confidence among employers has also fallen to its lowest levels since 1996 according to the Institute of directors.
Recent studies have shown that within the next year it’s heavily likely that the UK economy could fall into a recession.
House prices are expected to fall by 10% this year and by 6% in 2009. That will cause concern for homeowners and alike.
However, there is still some good news in that businesses still expect to take people on next year and most organisations also believe that profits will be higher this year than last.
Time will tell to see how the UK economy will pan out.
Confidence among employers has also fallen to its lowest levels since 1996 according to the Institute of directors.
Recent studies have shown that within the next year it’s heavily likely that the UK economy could fall into a recession.
House prices are expected to fall by 10% this year and by 6% in 2009. That will cause concern for homeowners and alike.
However, there is still some good news in that businesses still expect to take people on next year and most organisations also believe that profits will be higher this year than last.
Time will tell to see how the UK economy will pan out.
Monday, 21 July 2008
Pocket Money is hit by Credit Crunch
The credit crunch has led to the reduction in children’s pocket money as parents tighten their belts. Parents are using their savings and have had to cut pocket money due to rising bills two surveys have reported today.
A survey of 1050 people found that 14% of them had used their savings to pay for food and 12% had settled their mortgage or rental payments by dipping into their savings.
7 out of the 10 people asked suggested that they thought they would be paying more money on food, bills and petrol within the next 3 months.
17-year-olds have been the hardest hit this summer with them finding the biggest dent in their pocket as ‘the bank of mum and dad’ simply cant afford to give them any more money.
A survey of 1050 people found that 14% of them had used their savings to pay for food and 12% had settled their mortgage or rental payments by dipping into their savings.
7 out of the 10 people asked suggested that they thought they would be paying more money on food, bills and petrol within the next 3 months.
17-year-olds have been the hardest hit this summer with them finding the biggest dent in their pocket as ‘the bank of mum and dad’ simply cant afford to give them any more money.
Friday, 18 July 2008
Credit Crunch not as sharp as initially feared
The International Monetary Fund (IMF) has announced that the global slowdown which is a direct result of the credit crunch is not as bad as first feared. The global economy is expected to grow by 4.1% in 2008 against a forecast in April which stated 3.7%. However, this is still less than the 5% growth achieved in 2007.
Although this is a slight improvement the IMF stated that the global economy was still in a “tough spot”.
The first quarter slowdown was a lot less sharp than was predicted. Looking at the UK economy it is expected to grow by 1.8% in 2008 and 1.7% in 2009. People and businesses should still be wary of their financial situations but lets hope this is a sign of better times to come for the economy.
Although this is a slight improvement the IMF stated that the global economy was still in a “tough spot”.
The first quarter slowdown was a lot less sharp than was predicted. Looking at the UK economy it is expected to grow by 1.8% in 2008 and 1.7% in 2009. People and businesses should still be wary of their financial situations but lets hope this is a sign of better times to come for the economy.
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