There are signs that the long period of economic growth may soon be ending.
For a long time the UK economy has been bolstered by rising house prices and strong demand from the consumer. However, a series of very disappointing results on the high street suggest that consumer confidence has fallen significantly in the wake of rising living costs and falling house prices.
A full blown recession (negative economic growth) has yet to materialise, but, the signs are for a sharp slowdown.
The data will be of little comfort to the government (facing a record level of government debt – £60billion)
it will also be of little comfort to the MPC, who have to balance the twin problems of inflation and lower growth