UK consumer spending slows down, worried that Brexit affects the labor market

Brexit and the global economy weakened, affecting consumer sentiment. Some investigative agencies found that the growth of the UK labor market and consumer spending in 2019 was unsustainable.

According to EY ITEM Club, an economic forecasting agency sponsored by Ernst & Young, consumer spending growth in 2012 is expected to be 1.6%, the slowest in six years, but still higher than the 1.3% expected by the UK’s economic growth.

Reuters quoted the agency as saying that in the second half of 2018, the job market was stable and the real wages accelerated rapidly, boosting consumption at the beginning of the year.

Corporate earnings growth is expected to peak at the beginning of this year

However, EY ITEM Club expects corporate earnings growth to peak in early 2019 and is expected to remain at a slightly lower level.

Due to the weak economic outlook in the UK, the unclear Brexit and the weakening of the global economy, companies will adjust accordingly, and the labor market in the coming months will become more and more worrying.

The agency expects employment growth to slow from 1.2% in 2018 to 1% in 2019 and only 0.6% in 2020.