U.K. Economy Sinks at the Checkout Line

U.K. supermarkets offer a microcosm of the British economy and holds up a mirror to the global backdrop; it's not a pretty picture, and it should mean interest rates stay on hold everywhere.
Sign of the Times.

The U.K. supermarket scene is a microcosm of the British economy and holds up a mirror to the global backdrop in developed economies. Low wages and so-called flexible working contracts make it hard for workers to feel they're sharing in the economic recovery, undermining consumer confidence; the grocery companies themselves, meantime, have no pricing power and are in a beggar-thy-neighbor race to the bottom, sacrificing margins to maintain sales.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.