UK consumers feeling the pinch, being choosy where cash goes

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Despite all the nice new mobile devices being released alongside all the other new tech products, many people now have to watch what they spend. Fuel and utility prices are on what seems like a continued trend of going upwards in recent times. Today there are reports that UK consumers are feeling the pinch, and are being choosy where the cash goes.

So any spare cash many consumers have is going on varying areas, as retailer Argos who sell a variety of products including smartphones have announced plummeting profits. The BBC is reporting that the company revealed profits slumped to £3.4 million in the six months to August. This is compared to £54.4 million previously, and like for like sales had slipped 9.1%.

The chief executive of the retailer Terry Duddy said the market isn’t getting any easier and even in the holiday season “market conditions remain both weak and volatile”. Consumers are concentrating on more essential items, which is a term that can be defined in various ways.

Because broadcaster British Sky Broadcasting is seeing strong growth it its profits as many people are taking up its services. Profits in the three months to September rose to £327 million, with customers paying for its services jumped from 9.8 million to 10.4 million over the year. Those customers also spent more on average on Sky services up 4.9% to £535.

BSkyB chief executive remains optimistic and although the situation remains a challenge, feels that things are going to improve. Sky are not the only company seeing strong demand for its services, we reported earlier that Apple is expecting record sales of its iPhone 4S in the upcoming holiday season.

Are you being more choosey with your spending now?

Also See: Argos UK website down on Nov 28 with high volume