UK economy relying on the consumer

The UK economy remains dependent on consumer spending to generate growth, while manufacturing is in the doldrums and global trade is depressed. Dependence on consumer spending is becoming increasingly risky. Concerns over a slowing housing market appear to have become self-fulfilling with house prices generally treading water, and in London starting to fall. Declining house prices will have a detrimental impact on consumer confidence, particularly if negative equity re-emerges. However, we are increasingly confident that investment spending is due for an upturn and will help mitigate...