U.K. Consumer Spending to Slow Sharply in Coming Years, PwC Says
- Expenditure to moderate as higher inflation, uncertainty hit
- Housing and utilities spending to rise amid income squeeze
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U.K. consumer spending growth will weaken for years to come after slipping to about 2 percent this year from 3 percent in 2016, PricewaterhouseCoopers LLP said.
Spending, which accounts for more than two-thirds of U.K. gross domestic product, will slow further to 1.7 percent in 2018 as income gains fail to keep up with inflation, according to a report by PwC published Friday. It forecasts that housing and utility spending could account for just under 30 percent of household budgets by 2030, up from about 25 percent last year, forcing Britons to cut back on non-essentials.