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Meanwhile, across the Channel, the EU financial crisis continues to rumble on with no clear end in sight. EU-wide unemployment has risen to 11.6 per cent in September and GDP growth for the Eurozone is expected to be flat in 2012. This is at a time when a number of member states continue to struggle to manage their sovereign debts.

While the Olympics helped boost GDP, and undoubtedly provided a feel-good factor over the summer, the feeling from the retail sector is that sales were actually down over the Olympics as people stayed at home and watched events rather than going out to spend money, damaging sales for many retailers. Particularly in central London, sales were reported to be significantly down as people were encouraged to avoid travelling to the area due to fears of overcrowding on transport links. Perhaps more surprisingly, internet sales also suffered, as people, gripped by the events shown on TV, failed to browse the web and hence make purchases online. A rebound in retail sales could now be expected as purchases delayed over the Olympics are subsequently made. However, this will be too late for retailers JJB and Comet. They both entered administration in the third quarter, highlighting the continued difficulties seen across many sectors on British high streets.