CITY AM – UK growth to slide as stress builds
UK growth set to slow as economy experiences ‘renewed signs of stress’, KPMG warns
CITY AM SAYS The UK economy will “struggle to keep its head above water” for the remainder of this year as it is experiencing “renewed signs of stress,” KPMG warned today.
The Big Four accountancy firm said that while worries about a deep recession have largely gone away, the economy was not out of the woods yet.
Over the course of this year, it said that high interest rates, uncertainty and low productivity will likely act as a drag on economic growth.
“This will likely weigh on investment decisions, sterling, and UK-based assets,” the firm said in its latest report on the outlook for the UK economy.
It said that the effect of higher interest rates is feeding through to investment intentions, transaction volumes and corporate insolvencies, and the latest economic data signals a slowdown in economic activity.
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