Greater Manchester Chamber News

Date published: 15/01/2008

Commenting on the recent decision to hold interest rates, Carol Hopkins, Rochdale Local Manager at Greater Manchester Chamber, said: "A small cut in interest rates would have been welcome as our members are saying they expect slower growth this year.

"We understand the dilemmas that faced the Monetary Policy Committee. After cutting rates in December, the committee’s natural inclination was probably to wait until at least next month. Therefore a decision to wait wasn’t surprising, but in our view it was the wrong one.

"Given the immediate challenges facing the economy, the risks of waiting are greater than the risks of acting early. By deciding not to cut interest rates the committee has increased the risk that emergency measures will be needed later in the year."

Commenting on the Christmas 2007 national trading figures released by the British Retail Consortium, Ilona Krohn, Principal Economic Adviser at Greater Manchester Chamber, said: "The figures show that there was an increase of 2.3% in December turnover compared with 2006. On a like-for-like basis, the Christmas retail business grew slightly by 0.3% in 2007, despite economic challenges such as the credit crunch, high interest rates and stagnating house prices.

"In Greater Manchester the picture looks quite different. The two largest retail centres in the area, the Arndale Centre and the Trafford Centre are both very up-beat about their Christmas sales figures. Footfall numbers have reached record highs and first numbers indicate that turnover has followed suit. It looks as if retail in Greater Manchester has largely bucked the national trend and keeps doing well."