Fitch a step closer to cutting UK credit rating
BRITONS' disposable income fell in the fourth quarter, underlining the pressure on consumer spending as the UK economy stands on the brink of another recession.
Real disposable income declined 0.1pc from the previous three months, according to the Office for National Statistics in London. Gross domestic product fell 0.3pc, the same as previously estimated.
The Office for Budget Responsibility cut its growth forecasts last week and Chancellor of the Exchequer George Osborne said it would take longer than previously thought to cut Britain's debt, prompting Fitch Ratings to move a step closer to stripping the country of its top credit rating.
GDP is at risk of contracting again this quarter, marking the third recession in five years. Concern over the economy has weighed on the pound this year.
"The economy currently continues to find it hard to generate even modest sustainable growth and its task is not being made any easier by the increased pressure on consumers' purchasing power," Howard Archer, an economist at IHS Global Insight in London, said. (Bloomberg)