PwC - UK Economic Outlook: March 2011

PwC has published its UK Economic Outlook for March 2011 that states recovery remains fragile with GDP growth expected to be only 1.4% in 2011 and risks weighted to the downside.

Although headline inflation will remain well above target in 2011, it should fall back to target in 2012 as temporary effects relating to the VAT rise fall out of the index and global commodity prices probably rise less rapidly than they have recently.

Some of the special features of the report are:

  • Should the MPC increase interest rates to keep inflation under control?
  • How might UK consumer spending patterns change over the next 20 years?

According to the report, spending on housing and utility bills has seen a strong increase from around 13% of total household spending in 1963 to around 22% in 2009, and is expected to rise further to over 25% by 2030 as a result of rising relative prices and an ageing population.

To read the report in full, visit the PwC website.

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