Boom Or Gloom?

[Gromit]

Osborne and the Tories tell us the economy is booming...

// Tories were jubilant as they realised the UK was experiencing the most substantial economic growth in the developed world but there was a concerted effort from Downing Street to keep celebrations subdued.

Osborne and David Cameron stressed the need for a "responsible" boom aimed at the long-term stability of the British economy. //

http://www.politics.co.uk/news/2013/12/05/why-so-sad-george-the-reasons-behind-the-chancellor-s-gloomy

Meanwhile on the High Street...

// Tesco, Marks & Spencer and Morrisons report slump in sales as consumers become increasingly cautious.
The disappointing results, which one analyst described as "disastrous", increases the pressure on the chief executives of three companies, who have been struggling for the last year to turnaround their performance.
The sales figures from M&S, Tesco, and Sainsbury's follows profits warnings from Debenhams and Mothercare, who were hit by the level of discounting on the high street.
Dalton Philips, chief executive of Morrisons, said the UK market was "very tough". //

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10560351/Fears-for-recovery-as-Britains-biggest-retailers-suffer-disastrous-Christmas.html

So, are we booming?

[ludwig]

Well, if you want to include Aldi and John Lewis in your selective list of high street results, it's not so clear. Those results are about reshuffling of market share rather than any economic indicators.

We're neither booming or glooming. We're experiencing economic growth after a recession.

[jomifl]

People spending their plastic in supermarkets is not an economic boom.

[emmie]

no idea, but M&S are seemingly to their core customers to be rather out of touch, their food sales seem to do better than the rest of their goods.

it's a very tough market, and if Sainsburys are down Waitrose are up, or so the news reader said this morning, so some have done better than others

[emmie]

its still gloomy for many because of higher cost of living, utilities up, fares up and not abating from this, nor will it. I have been trying to calculate why i appear to be spending double on my gas bills than a year ago, and after talking with one of their team still can't find the definitive answer, other than their have levied a standard daily tariff, which wasn't on there before, it was supposed to make the bills easier to understand, it hasn't, its just made it dearer.

[jno]

I haven't seen the overall spending levels so it's hard to say. But it looks as though people spend more on places like Amazon, which contribute so much to the UK economy though paying their taxes, so that has to be good news, doesn't it?

[emmie]

not to the businesses that have gone bust because they cannot compete on price, whilst they employ two people in their book shop, think Nottinghill, the film not so much the place, and then have the rental on the shop, rates. buy in goods, and staff overheads, all that coffee they were drinking, can't be good for you either, whilst Amazon have large warehouses full to brimming with many goods, enough staff, machinery to whizz around the place, collecting up your items and posting them off, its a great system, for them, not so much the bookstores, music outlets, and sundry other businesses who simply can't supply at the costs that Amazon does.

[jake-the-peg]

No - we're spending money we haven't got again

http://online.wsj.com/news/articles/SB10001424052702304866904579269712811947376

Economy grew but our balance of payments against the rest of the world fell

It's good in that it reflects a growing confidence but if trade with the rest of the world doesn't pick up spending borrowed money will either peter out or if the reigns are relaxed start a new bubble

[youngmafbog]

As pointed out you have forgotten (presumably an oversight and not deliberate) about the companies that have increased their market share. M&S and Tesco it's simply they have not been able to perform since Lehey and Rose left. Clearley the CEO's are not up to the job and I suspect we may see some moves. Morrisons failed to embrace the changing market in time and so will struggle. ripe for take-over (by ASDA would be my guess)

Jake, you are right and it is worrying< although often this means consumer confidence I suspect that it is more to do with low interest rates which the BoE has seen fit to keep the same (As has the EU)

[youngmafbog]

Gromit, to answer your questio, NO we are not booming, but there again we are not in the gloom either. Which is probably the best place to be at the moment until world economies (esp the EU) pick up

[Khandro]

jno; //which contribute so much to the UK economy though paying their taxes,// I know you are being ironic, but Amazon isn't doing anything against the law, if they are avoiding tax by various loopholes it's up to our government to change the situation in our favour.
They are also providing lots of new jobs, and probably keeping our postal system alive in the decline of letter posting.

[emmie]

i sent two packages to a friend, it would have been cheaper for me to have delivered them in person, Royal Mail parcel service, very expensive.

[Sqad]

For me.....BOOM.

The £ is strengthening against the € day by day and as my pensions are paid in £s then.......BOOM.

But i shall pay more Spanish tax. -:(

[jno]

Khandro, I know it. I suppose the government could arrange things so companies like Amazon paid tax (I suspect it would be simpler and more cost-effective than chasing people like you and me). But they don't seem inclined to.

I'm not sure about our postal system, though; their products seem to come via different delivery companies.

[jno]

as I suggested, online sales shot up 19% in December over the previous December

http://www.bbc.co.uk/news/business-25671561

Overall retail sales just 0.4% up