UK GDP growth: Lowered- RBS

Research Team at RBS, have revised down their UK growth forecasts, lowering 2016 to 1.6% from 1.9% and 2017 to 0.8% from 1.8%.

Key Quotes

“We believe the main macroeconomic pressure will materialise in business investment expenditure – the most cyclical component of demand. Business surveys already show confidence and investment intentions at 3-year lows. They are likely to deteriorate further.

Consumer demand may be a little better insulated in the near-term, but rising unemployment will slow consumption growth in 2017. Inflation is forecast to rise as sterling’s depreciation forces up import costs. A further wage squeeze is expected as firms respond to rising cost pressures and weaker demand.”