UK Heatwave: The Winners and Losers

This week Britain experienced its hottest day for 13 years, falling just short of being the warmest day on record. Gravesend in Kent recorded the highest temperature, at 35.9 degrees C.

But who are the economic winners and losers when the temperature rises above the 30 degree mark?

The true impact is hard to measure, but according to the Centre for Economics and Business Research (CEBR), a heatwave such as the current one could cost the British economy up to £280m a day.

This is largely due to falling productivity as workers struggle in the heat. Research in the US suggests that the productivity of an average worker drops by 8% when the temperature exceeds 80 degrees Fahrenheit, and by a staggering 62% if it reaches 100 degrees.

The CEBR also believes that the heat costs the retail sector as a whole some £1.7m a day as shoppers desert the high streets and sales of expensive items such as outdoor clothing plummet.

The railway sector has also lost out, having to cancel some trains and impose speed limits as a precaution against 'buckling' tracks.

There are winners in the warm weather, however.

Not only do the tourist industries based around Britain's seaside resorts thrive, but the supermarkets, armed with long-range weather forecasts from the Met Office, waste no time in stocking up on barbecues, salad ingredients, sun cream and beer, making them the biggest winners when the mercury rises.

You can find out more on the BBC website:
http://news.bbc.co.uk/1/hi/business/3126197.stm
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