Slower consumer spending, and political and economic uncertainties around Brexit are set to lead to a slowdown in economic growth for 2017, PwC has predicted.
A report by the accountancy firm forecasts UK GDP growth will slow to 1.5% in 2017, and 1.4% in 2018 – down from 1.8% in 2016 – as households begin to feel the squeeze on budgets following the Brexit vote in June 2016.
The report notes that growth is expected to continue at a lower level, as inflation impacts spending power. So far, high borrowing levels have offset the impacts of this, and the weakness of sterling is also potentially proving beneficial for exports.
Commenting on the results, Jamie Hawsworth, chief economist for PwC, said: “There are still downside risks relating to Brexit, but there are also upside possibilities if negotiations go smoothly and the recent eurozone economic recovery continues. We expect the UK to suffer a moderate slowdown, not a recession, but businesses should be monitoring this and making contingency plans.”
You might also like...
Amazon Prime Day breaks sales records with 60% growth
Amazon’s third annual Prime Day sales event grew by more than 60% globally compared with last year, the ecommerce giant has reported.
Editor's Comment: Will Amazon Prime Day come back to bite brands?
Now in its third year, Amazon’s Prime Day has quickly become a calendar highlight for brands and consumers alike.
Ebay takes on Amazon UK with price-match guarantees
Online auction site Ebay has launched a price-match guarantee on more than 20,000 items on its UK site, in a bid to rival retailers such as Amazon and John Lewis.
Editor's Comment: Amazon and YNAP up the ecommerce ante
Having been away for the last two weeks at menswear trade show Pitti Uomo in Florence and advertising and innovation festival Cannes Lions in the south of France, I’ve returned to the UK to see etail giants have once again dominated the headlines.
Amazon Prime Wardrobe is a 'game changer', say experts
Amazon has “thrown down the gauntlet” with the launch of its new try-before-you-buy delivery service, industry observers have said.
Amazon fashion launches ‘try before you buy’ service
Amazon is launching a service that allows shoppers to try on clothing at home before they pay for it.
The Drapers verdict on Amazon's own label, Find
Amazon has quietly introduced its new own-label brand, Find. Drapers’ head of fashion, Graeme Moran, shops the first collections and tests out the online experience.
'Take no-deal Brexit off table,' says BRC, as sales stall
Retail growth slowed in February, edging up by just 0.5% compared with last year, as Brexit uncertainty continues.
Brexit tops consumer concerns for 2019
Brexit is the biggest concern for almost half of British consumers in 2019, new research shows.
Consumer confidence edges up
UK consumer confidence edged up one percentage point to -8% in the first quarter of the year compared with the previous three months, new research has shown.
Have your say
You must sign in to make a comment
Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.