Britons Won’t See Acceleration in Wage Growth, Item Club to Say
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Britons won’t see any acceleration in wage growth this year, which will limit the contribution of consumer spending to the U.K. recovery, E&Y Item Club will say in a report tomorrow.
While the economy is strengthening, households can’t continue to drive gross domestic product without a pickup in wages and the Bank of England should not consider raising interest rates until growth is assured, Item Club will say. The U.K. also needs to see an improvement in business investment and exports, it will say.