Credit crunch beginning to hit family budgets

The Guardian reports on dire warnings from the retail, leisure and media sector that the impact of the credit crunch is being felt beyond financial markets. Three cases studies (a hamburger chain, a pubs group and a sofa store) illustrate the uncertainty created by the sub-prime crisis. Forecasters warn that the UK is starting to show evidence of strained household budgets and a wider economic downturn.The British Retail Consortium reported a weak rise in sales last month despite heavy discounts. Consumer confidence is also at a four year low. Tesco called on the Bank of England's monetary policy committee to cut interest rates soon, saying the risks to the economy posed by inflation were far lower than the threat connected with a downturn in consumer confidence.

http://www.guardian.co.uk/business/2007/dec/04/retail.creditcrunch
http://www.guardian.co.uk/business/2007/nov/30/consumerspending.retail
http://www.guardian.co.uk/business/2007/dec/04/tesco.christmas2007