The global economy has hit a rough patch and Hannah Wakefield is having to be more careful with her spending because she has just taken on a mortgage. (Picture by Peter Frankland, 0590563)

A FALL in local high street spending is mirroring the UK, according to leading local retailer Tony Creasey.  He said that the credit crunch, as well as local issues such as the rising cost of petrol and zero-10, had affected sales.

‘It has been a difficult start to the year,’ said Mr Creasey.  ‘People are being quite careful because at the start of this year there was uncertainty as to how zero-10 would affect them. But there are other factors as well.’

Treasury minister Charles Parkinson said at the weekend that Guernsey was experiencing the effects of a two-tier economy. Although the fund-management industry saw a large increase in new business, household equipment and car sales had slowed, reflecting the change in the housing market.

Islanders admitted that they, too, were feeling the pinch, with many saying that they were thinking more about their spending.