There was mixed news throughout the week, which saw important data released for the period of October 2005.

High Street Sales

 

Certainly good news was that UK retail sales showed a small gain in October, at just less than 1%, according to the Office for National Statistics (ONS). High street sales have been in the doldrums throughout 2005, due to a combination of high fuel prices and debt repayments burdening consumers. Most of the sales were clothing, with many high street retailers and catalogue firms discounting significantly to boost sales. This contributed to a reduction in UK inflation to 2.3%, the lowest since September 2004. The ONS is hoping that the high street gloom has passed it’s worst.

Consumer Credit Increases Slightly

 

According to data from the Major British Banking Groups (MBBG), unsecured personal lending increased by a total of £ 0.7 billion in October 2005. Loans and overdraughts were up by £ 0.44 billion and credit card borrowing increased by £ 0.24 billion. This increase in consumer lending is consistent with the small increase in high street spending mentioned earlier. Mortgage lending rose by £ 4.3 billion, slightly weaker than previous months, corresponding with the small but steady growth in the UK housing market. The MBBG described the increased demand for consumer credit as “cautious”.
Job Insecurity Amongst UK Workers

 

Apparently UK staff top the job insecurity table of the world’s leading economies, with 1 in 4 workers in the UK expecting to leave their jobs in the next year. Top of the league table comes Japan, with German workers the least confident of the 18 countries surveyed. Over 70% of UK workers said that they would struggle to find a job if they became unemployed.
UK Pension Age to Rise?

 

Finally, it seems likely that the present UK retirement age of 65 will be increased to 67. The widely reported pension crisis is currently being looked at by the Pensions Commission whose report will be officially released at the end of November. According to the Financial Times, the Pensions Commission will recommend an increase in the age at which people can claim the state pension will rise from 65 to 67. At the same time a substantial increase in the means-tested minimum pension will be increased by 20% to £ 109 a week. It’s also claimed that these changes wouldn’t be implemented until 2020, thus would only apply to anyone presently aged under 50. Other proposals suggested are a new National Savings scheme, which individuals could opt out of if they had other commitments such as a mortgage or debt.