The recent big news, which is the continued fallout from the Libor fixing scandal and the likely announcement of a new ‘injection,’ of, ‘quantitative easing,’ into the economy.
Whilst Government advisors may be concerning themselves with the potential backlash from the public over this move, they will be keeping half an eye on Topps Tiles’ third quarter statement which was released a few weeks ago.
The theory goes that the success of Topps Tiles provides a useful barometer for the state of the UK economy, and in particular consumer confidence and that of the housing market. The reason for this is that amateur DIY enthusiasts are much more likely to do a bit of re-tiling in their bathrooms if they have more disposable income available. More re-tiling is also likely to occur when there has been an increase in housing transactions.
In May, Topps announced that trading had increased significantly during the first seven weeks of the quarter, so George Osborne will be watching the results and hoping that, if positive, they will be a harbinger of an improving economy.