Forum Moderators: martinibuster
Corporations tend to spend more in the begining of the year.
Sometimes they're a bit slow out of the gate, though, at least when it comes to spending advertising money. First the budgets have to to be approved, then the companies have to implement their ad campaigns.
For many years running I've seen a significant bump in UK business spending beginning in the new year.
It's very doubtful it has anything to do with a new year's budget since a UK business year runs 6th April to 5th April.
It's more likely that there may be an advertising increase in expenditure after the success/flop of pre-Xmas/Xmas/New Year sales and an attempt to liquidate over-bought stocks.
Now March time is when you see UK businesses/government burning up their budgets like wildfire, for example our totally inept health service.
Similar. What I experience is the bump begins in the new year and burns out about end of March. Then the UK settles down to it's usual (relatively) low levels.
>>>since a UK business year runs 6th April to 5th April.
I looked into this annual phenomenom many years ago and the conclusion I arrived at is that it's related to burning budgets prior to the end of the business/tax year. It's the only reason I could see for a significant, and I mean eye-popping, increase in business spending beginning in January of every year and ending a few months later.
is that it's related to burning budgets prior to the end of the business/tax year.
Absolutely however the Internet has made it much easier for them to complete their burn much later now, many will decide by the end of February their unused budgets and then the on-line electronics/furniture providers etc have a field day.
The wasted money on unnecessary/renewed products just has to be seen to be believed and we'll not even mention the waste in office refurbishments...and as for the E.U. and its profilgacy!
Hey, I'm in the wrong business:-)