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Standard & Poor's warns of UK economic slowdown

Staff Writer |
Ratings agency Standard & Poor's thinks the UK economy is heading for a soft patch, The Financial Times reported.

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The newspaper cited a S&P report which said that squeezed real wages and uncertainties relating to the manner in which the UK will leave the EU mean that growth will likely be 1.4% this year, and 0.9% in 2018.

That represents a pullback from the 1.8% growth in 2016 and is "subject to considerable downside risks, stemming mainly from Brexit uncertainties," S&P said, according to the FT.

The agency does not expect a rise in UK interest rates until mid-2019, the newspaper said.

Data from the Office for National Statistics showed last month that UK gross domestic product climbed 0.2% sequentially in the first quarter, easing notably from a 0.7% rise in the fourth quarter. Year-on-year, GDP grew 2%, in line with the previous estimate.

Earlier this month, the National Institute of Economic and Social Research said the UK economy expanded 0.3% in the second quarter.

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