The British Chambers of Commerce (BCC) has slightly downgraded its expectations for GDP growth in 2018 from to 1.3%, down 0.1% from its previous forecast 1.4%.
The business group also lowered its GDP growth forecast for 2019 from 1.5% to 1.4%, attributing the downgrades to a “more lacklustre outlook for consumer spending, business investment and trade”.
Despite real wage growth entering positive territory in May 2018, this is not expected to lead to a substantial increase in consumer spending as household finances remain stretched.
Additionally, growth in business investment is set to slow to 0.9% in 2018, down from 2.4% in 2017, as a result of the high costs and ongoing uncertainty faced by businesses.
Adam Marshall, director-general of the BCC, said:
“The next few years are set to be a testing time for business in the UK.
“What firms and their employees need is much more visible evidence that ministers are committed to getting the basics right – which would enable business in turn to invest, take risks and grow.”
For any help or advice with financial planning talk to RPD