Consumer spending fall risk for UK

There is a faint buy distinct risk that the predicted sharp slowdown in the housing market will cause a consumer spending drought in the UK. However, most fund managers feel that a serious downfall will be avoided. Threadneedle is positive about the UK and does not think it will fall off the cliff, predicting that GDP will grow by 3.5% for 2005 and 2.5% for 2006. Laurence Mutkin, head of fixed income strategy at Threadneedle, says: "The outlook for the UK economy is deteriorating, but the data suggests it is not as bad as what people think." However, Mutkin warns the risk to the ...