Keep a weather eye

11 May 2023

A positive trading update last week for the first 16 weeks of the year from DIY group Wickes showed how something as basic as the weather can impact business both positively and negatively. 

The company’s core sales were affected by adverse weather in the first part of 2023, which saw periods of severe cold and prolonged rain. This put a dampener on spring outdoor gardening and landscaping projects, and demand for materials and equipment. 

Indeed, many hirers and supplier that I spoke to during this period have also reported fluctuating levels of business and thought this might have been caused by economic uncertainty surrounding inflation, interest rates and energy prices.

However, might a major contributory factor have been the weather? And when drier and warmer conditions arrived, business picked up for many businesses. 

So keeping an eye on the weather might be more productive than worrying about what financial forecasters and commentators might suggest. As a quote attributed to George Bernard Shaw states: If all the economists were laid end to end, they would not reach a conclusion. 

Also, interestingly, Wickes reported that storms in the prior year “drove significant sales uplifts” in fencing in the comparative period, presumably to replace damaged structures in homes, gardens and other premises. 

As another saying goes: It’s an ill wind. 

● Speaking at a press conference following the Bank of England’s decision today to raise interest rates by 0.25 per cent to 4.5 per cent, governor Andrew Bailey said the Bank now believes the UK will avoid recession. 

“The outlook for growth and unemployment has improved,” he said. “Six months ago we were expecting a shallow but long recession. Since then energy prices have fallen substantially and economic activity is holding up better than expected. So today we are forecasting modest but positive growth and a much smaller increase in unemployment. We think inflation will fall quite sharply over the coming months, beginning with the April number which will be announced in two weeks time.”

He also said recent surveys showed that consumer confidence “though still weak, is at its highest level for over a year.” 

Photo: Pixabay

● Don't forget to also explore the Site-Eco area of the blog for news of sustainable products and developments relevant to the world of hire.