Overall, the economic recovery is expected to continue in the short term. In fact, much of the recovery is set to focus on the coming months, with Cebr forecasting a quarterly growth of 4.2% in the third quarter. This will be largely facilitated by the relaxation of the remaining restrictions proposed from 19 July, with production exceeding pre-pandemic levels in particular.
Beyond that, there are signs that growth will level off, with faster economic indicators showing slower growth in card spending and consumer footprints.
There are other potential hurdles on the horizon that can delay recovery. The most specific of these is the end of the temporary dismissal scheme, which is currently in the taper stage before the full cutoff at the end of September. As long as the scheme increases the risk of unemployment, consumers can curb their spending and become more cautious in the face of uncertainty and greater employment insecurity.
This could be exacerbated by the proposed withdrawal of the Universal Credit hike, which could adversely affect the lives of the worst households and at the same time reduce total consumption levels.
UK economic growth slowed to 0.8% in May – Business Live | Business
Source link UK economic growth slowed to 0.8% in May – Business Live | Business