Latest forecasts suggest the economy will return to growth over the next six months, boosted by falling inflation and a pick-up in consumer spending.
Analysis from Ernst & Young (E&Y) predicts falling inflation will mean consumers will have extra cash to spend on the high street. However, the report said the UK will only achieve zero growth in 2012 as a whole. It said longer term, sustainable growth remained dependent on an improvement in the UK's export performance and business investment. E&Y forecasted 1.6% GDP in 2013 and 2.6% in 2014. Peter Spencer, chief economic adviser to the Ernst & Young ITEM Club said: “Spiralling inflation has cut real wages by 7.5% over the last four years, but the squeeze is almost over. "Inf...
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