U.K. Household Gloom Deepens as BOE Predicts Retail Slowdown
- As pessimism mounts, BOE sees retail sales slowing this year
- Weaker pound, wages push up firms’ costs, squeezing margins
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Rising prices are tightening Britons’ purse strings and deepening their gloom about the outlook for their finances, posing a risk to domestic demand in the economy.
Households are the most pessimistic about their financial prospects since 2013, IHS Markit said in a survey published on Wednesday. A separate report from the Bank of England showed that the pound’s 16 percent fall since the June referendum to leave the European Union is boosting inflation and damping retail sales, a trend that’s set to continue this year.