The economic slowdown marks the end of the strong growth that began at the beginning of the year.Combination of relaxation of restrictions, pent-up demand and safety net take a vacation Helped to promote the rapid rebound that began in early spring.
Recently, the conspiracy of the epidemic, driver shortages and global supply chain issues has undermined the momentum. It is unlikely to get better in the short term.
The vacation ends this month, and about 1.6 million people still rely on state support. After the sharp decline in the number of people on leave, people are very worried that the unemployment rate will soar. Elsewhere, the government’s annual increase of £1,000 in Universal Credit will also end this month, which will worsen the situation of about 5 million poorest households at £20 a week. Continued staff shortages and supply chain problems cannot be resolved quickly, which makes industry professionals seriously worried about Christmas shortages.
The Ministry of Finance’s expenditure review-setting the government department budget for the next few years-and Rishi Sunak’s annual budget are both looming in the coming months. Both may tighten the belt, in stark contrast to the previous announcement.
In general, the outlook for the British economy is much bleaker than it has been in the past few months. The difficult road to pandemic recovery is still ahead of us.
