UK growth will slow as consumer spending is squeezed, forecasts PwC

Economy likely to cool in next two years because of rising inflation arising from weak pound, consultancy predicts

Record levels of employment will fail to prevent the economy's growth rate slowing this year and next during a period when consumer spending will be squeezed by rising inflation and falling living standards, the consultancy firm PwC has predicted.

PwC said action by the chancellor, Philip Hammond, in his autumn budget would help offset weaker household spending and delayed investment by firms anxious about Brexit.

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