“Subdued”. It’s just one of those words isn’t it? It elicits a sense of submission. A feeling of powerlessness. But that’s the word CBI has used to describe how the UK economy is set to look over the coming months.
Feeling the pinch
Despite upgrading the initial growth forecast for 2017, it still sits with just an average growth of 0.3% per quarter – that’s half the rate compared to 2013-2016. So even though exports will likely increase as a result of the weak pound, domestic and business spending is certain to be hit. People will tighten their purse strings at home and business will be less likely to invest.
This could mean a bit of an impasse for some businesses – as Brexit deals are negotiated and we’re in somewhat of a ‘no man’s land’ of knowing what will happen next. But don’t be disheartened, the outlook is still ‘steady’ and we can still expect growth – even if it is slow.
So – “steady but subdued”. Well done CBI, you’ve officially found the most British description for the state of our economy. Nothing like a bit of positivity!