Commenting on today’s preliminary UK Q1 GDP figures, Yael Selfin Chief Economist at KPMG said:
“First quarter saw the pace of economic growth decelerate significantly, as consumers reassessed their spending in light of rising prices. We expect consumer spending to remain subdued this year as wages are unlikely to keep pace with inflation, leaving households worse off. This will see the economy growing marginally less strong this year than in 2016.
“With the recently announced UK election making the transition period to a full exit from the EU likely to last longer, the Bank of England may feel it is no longer necessary to keep interest rates at a record low for the next two years. Consumers will therefore need to brace for the potential squeeze from a rise in interest rates, which would see weaker growth.”
For media enquiries, please contact:
Jess Liebmann, KPMG Corporate Communications
T: 0207 311 3245
M: 07551 135778
KPMG Press Office
T: +44 (0) 207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.