Sterling has been on the slide for the last couple of weeks and reached a 31-month low against the dollar on Friday. This was before the announcement by Moody’s of it downgrade of the UK from the much coveted AAA rating. Today sterling has continued its slide and it’s a brave man that would predict where things are likely to end up by the end this week.
Whilst a weakened sterling is good news for exports its really bad news for imports. Given all USB flash drives are manufactured in China and traded (paid for) in US dollars it’s particularly bad news for any business or educational body looking to buy printed or engraved USB memory sticks right now.
What makes things worse is that the factories in China that manufacture USB flash drives are just returning from a 2 week Chinese New Year Holiday. This long break creates a build-up in demand which in turn drives up prices. This annual “spike” in demand always drives up prices until things settle down again but this year there is the spectre of a “double whammy” of rising prices and falling currency values – combined the net effect is broadly a 15% increase in USB flash drive prices.
The Chinese New Year effect usually lasts around 4 -6 weeks before prices begin to come down again but an 8% fall in the value of the £ against the $ is unlikely to mean prices will return to where they were just a couple of weeks ago.
If you need to buy your promotional USB flash drives now or in at any time during the next few weeks then brace yourself for higher prices. If you can delay your purchase for even a couple of weeks it’s probably worth doing so.
USB Flash Drive Prices Rise on Back of AAA Rating Downgrade
Tags: AAA, increases, prices, promotional usb flash drives, rises, sterling, usb, USB Flash Drives
This entry was posted on Monday, February 25th, 2013 at 10:32 am and is filed under promotional flash drives, Promotional Memory stick, Promotional USB, Promotional USB Flash, promotional usb flash drives, USB2U News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
