Stagflationary doom loop – UK GDP

Commenting on the latest UK GDP figures, Neil Wilson, Investor Strategist at Saxo UK said: “After a solid start to the year the British economy is now looking a lot weaker, and the outlook has worsened. Recent data has been poor,  particularly the bad construction PMI and cratering in payrolled employees. Yet wage growth is still strong due in large part to public sector pay deals. Inflation remains too high, and growth is failing – we are into a stagflationary doom loop. This would be bad enough if it were not also for the fact that we face a fiscal black hole that will mean more tax hikes, which will pile more pressure on consumers, further harm consumer and business confidence and accelerate the debt death spiral.”