Threadneedle CIO predicts slow recovery in UK

Threadneedle CIO Sarah Arkle says the UK will not return to traditional growth rates in the near-term despite the unprecedented level of stimulus pumped into the economy.

Arkle believes the impact of the stimulus will fade next year when the period of debt repayment, both at consumer and government levels, is likely to start in earnest. “We see a slow and difficult recovery and have below consensus forecasts for GDP growth for next year,” Arkle says. "In all sectors, our current focus is still dominated by strong companies with good management and cash flow because of our expectation of slow demand growth and limited access to credit. “However, the market’s appetite for risk and willingness to provide fresh equity to replace debt suggests we should ...