UK economic growth to face 'soft patch' not double dip

The UK recovery is losing momentum and will slow over the winter but chances of a double-dip recession are "exaggerated", according to the Ernst & Young ITEM Club.

It estimates GDP will grow 1.4% this year and 2.2% in 2011 but the recovery will face a "soft patch" in the coming months. The report comes ahead of the government's Spending Review on Wednesday which some fear may stunt the economy, the BBC reports. "The economy is likely to slow over the winter following a surprisingly positive first half of the year, but I think this will be a soft-patch, not a double-dip," says Peter Spencer, chief economic adviser to the Ernst & Young ITEM Club. He warned that low wage growth and rising unemployment along with high inflation, meant the average...