Risk of UK recession on the rise as consumer spending drops

Latest ONS figures

Economists have warned a recession could be on the horizon in the UK, as consumer spending continues to fall and threatens to cripple growth.

The latest figures from the Office for National Statistics (ONS) released yesterday showed consumption had grown by only 0.1% in the three months to June, the weakest quarter since the end of 2014. Economists said the data suggests a squeeze on household finances and spending as inflation outstrips wages, according to The Times. Consumer spending accounts for almost two thirds of economic output, so a collapse could be devastating for the UK, pundits have warned. This has had a further knock-on effect on shops, as the contraction in retail sales in the year to August has led to pla...