The US Looks Good For A Holiday This Year!
The weakness of the US dollar has opened up a situation for UK holiday makers which has not been seen for some time. As sterling currently stands at a 26 year high of $2.032 to the pound, cheaper holidays in the US seems sure to tempt many UK travellers. This recent fall in the value of the US dollar is a little concerning, with more bad news expected in the short term. So why is the US suffering?
The US economy has been growing well over the last few years, and in a similar situation to the UK it seems that consumers in the US are determined to spend, spend, spend. Savings rates as a percentage of income are at an all time low, property prices are still rising and there is a general unwillingness to reign in consumer spending.
The US Federal Reserve have tried to slow down the economy with a number of rate rises, but as yet there has been no real reaction. There are some strong immediate concerns about the state of the sub-prime mortgage market, where many of the major players are struggling. This situation was not helped by news that the credit rating agencies are looking to possibly downgrade the risk factor associated with $12 billion dollars worth of bonds, issued by sub-prime mortgage lenders.
Miami, Florida or Chicago, the US beckons for many UK holiday makers with savings of at least 10% from this time last year into the bargain!
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