Recovery expected to slow down in Autumn

The UK’s economic recovery is expected to slow down in Autumn, according to economic consultancy Pantheon Economics.

UK GDP rose by about 8% month-on-month in July but is only expected to grow by 3% in August and September, before fading to below 1% after that.

While households are expected to see their incomes rise in Autumn, as furloughed staff go back to work employers are likely to bring back some workers on reduced hours.

There could also be more job losses, as firms get rid of furloughed workers before they start paying wage costs again.

Workers who can’t rely on the furlough scheme may cut down on spending, knowing they would have to rely on Universal Credit if they lost their job.