UK Consumer Spending Forecast to Grow at Slowest Pace in Six Years in 2019

Consumer spending in the UK is set to grow at the slowest pace in six years during 2019, mainly driven by Brexit uncertainties.

Arslan Butt•Monday, June 24, 2019•1 min read

According to EY ITEM Club, consumer spending in the UK is set to grow at the slowest pace in six years during 2019, mainly driven by Brexit uncertainties. Consumer spending is expected to grow 1.6% YoY due to weakening in the economy.

A high growth in employment during H2 2018 and in early 2019 as well as a significant rise in real earnings had helped consumer spending in the UK so far, but as the Brexit deadline approaches, the outlook is getting weaker, spelling bad news for UK retailers.

A potential slowdown in global economy, Brexit and political uncertainties as well as overall weakening in the British economy will exert downward pressure on the labour market. As job growth reduces, this can bring down consumer spending and affect the market sentiment further.

On Monday, GBP/USD is trading stronger at 1.2749 over a falling US dollar, even as Britain waits to see who its next prime minister will be.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.