The UK will return to growth in the second half of the year fuelled by consumer spending power despite exports continuing to disappoint, according to Ernst & Young's latest forecast.
The professional services firm's autumn forecast said "deeply disappointing" trade figures have hindered growth over the last six months but falling inflation and rising inflation have seen consumer demand strongly return. The firm said these trends would continue to gather pace next year, supported by a resurgence of the housing market. According to the report GDP will fall to -0.2% this year overall, before increasing to 1.2% in 2013 and 2.4% in 2014. Peter Spencer, chief economic adviser to the Ernst & Young ITEM Club, said: "With exports being battered by the Eurozone crisis an...
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