Impact of the Economy

Following the referendum over EU membership last month in the UK where the decision was a vote in favour of leaving, the United Kingdom’s currency the Pound Sterling has come under a lot of pressure. In the wave of uncertainty following the referendum not only has the Pound dropped in value against other currencies, but whole financial market is has also seen a downturn.

Even before the vote took place uncertainly had already caused a stabilisation of many prices, rather than the usual gradual decrease. With almost all devices being imported into the UK, even in some cases stock held in a country such as Germany, prices of most computer components have started to increase, despite the introduction of newer models.

For any company or individual who upgraded their systems or components before the price stabilisation and increase will not be too worried, but for those who for one reason or another missed out, it may have a significant impact upon their upgrade options. This may lead to many people delaying their next computer purchase, which for those continuing to use an old system increases the risk of a problem occurring.

It is uncertain how long this situation will remain, with the United Kingdom yet to start negotiations over leaving the European Union. Much will depend upon the trade deals put in place, some of which may be better with some countries outside the EU, but there is a likelihood that many may be worse, which could lead to yet further price rises.

The current financial situation with extremely low interest rates also makes saving almost worthless, so the decision of whether to spend money now or wait to see if prices start dropping again is a gamble. It is also worth noting that if the interest rates were to go negative, a small possibility, some banks have already reserved the right to charge interest on balances in credit for business customers, which would further reduce spending power.

Depending on how long this situation lasts, many companies and individuals will be reluctant to upgrade systems, increasing the risk of a hard disk drive failure. It is therefore essential to ensure that backup systems are in place, for such an eventuality.

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