Business Investment: Consumer Spending and Inflation Jumps

business investment: However, this performance is expected to fizzle out as inflation jumps 2.6% next year and 1.8% in 2018, causing consumer spending to slump 0.5% and 0.9% respectively, according to The Guardian. Business investment is also slated to take a hefty knock from uncertainty surrounding Britain future trading relationship with the EU, dropping 1.5% this year and more than 2% in 2017. Brexit adviser: leaving EU customs union will cost UK £25bn a year Read more Influential thinktank EY Item Club said the UK economy will produce GDP growth of 1.9% this year, fuelled by a 2.5% rise in consumer spending on the back of low inflation. The double whammy impact will cause UK GDP growth to drop sharply to 0.8% next year, before rising to 1.4% in 2018. Sterling shaky performance this month provides a timely reminder that challenges lie ahead. Peter Spencer, chief economic advisor to the EY Item Club, said: So far it might look like the economy is taking Brexit in its stride, but this picture is deceptive. (news.financializer.com). As reported in the news.