UK Economy Slowed Down As Consumer Spending Decline

The British economy is expected to slow down this year, following its slowest pace since 2012 considering the fact that the citizens of Britain had cut back due to increasing inflation, based on the latest predictions that could wreak an impact towards consumer spending.

The annual GDP growth is projected to decline by 1.5 percent this year and 1.4 percent next year because of the stumbling demand shown on the forecasts of accountants PwC.

The growing cost of day-to-day products dropped as 2017 started on the back of strong expenditure that mold the economy into a much better shape during the end of 2016 compared with the outlook of well-known economist for the aftermath of the Brexit referendum.

Nevertheless, the effects of the sharp downturn in the pound value after the EU exit triggered for the inflation surge which is 0.5 percent only in June 2016 through 2.9 percent in May. The most recent inflation data will be issued this morning as the PwC projected that it will keep on the average of 2.9 percent up to 2018.

According to the new forecast, the growth for private expenditure fell to 1.5 percent which is a significant downward revision made by PwC during earlier estimates on March that expects 2 percent consumption growth.

The Office for National Statistics said that the consumption expenditure gained 1.7 percent growth in 2016.