MSE News: UK economy growth forecast slashed

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"A leading business body today cut the UK's growth forecasts but believes the economy will narrowly avoid recession ..."

Read the full story:
UK economy growth forecast slashed



This thread is not in the 'discuss house prices and economy board' as that is only open to those logged into the forum so anyone coming from the news story may not be able to see it.

siwatkins

How will consumer spending increase as a result of inflation falling towards the back of this year? Inflation (to any degree) results in the cost of goods rising. However, salaries/wages are frozen. Thus real inflation (ie the difference between wage inflation and goods inflation) is still positive, and thus there is nothing extra to spend!