Economy faces US-Iran war 'shock' as consumer spending forecast to plummet

Breaking - Google News Iran / Middle East War

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British households face a dramatic slowdown in spending power this year as the economic fallout from the Iran conflict ripples through the economy, a major new analysis has warned.According to EY's latest economic outlook, growth in consumer spending across the UK is forecast to virtually grind to a halt in 2026, with projections showing a mere 0.3 per cent increase.This represents a significant downgrade from the 0.9 per cent expansion anticipated before hostilities erupted in the Middle East.The Big Four financial services giant said the inflationary surge triggered by the war would squeeze household budgets severely.Non-essential purchases are expected to bear the heaviest burden, with businesses serving consumers directly set to feel the pinch most acutely.The consultancy's central forecast puts overall economic output growth at just 0.8 per cent for the year, a marked reduction from the 1.3 per cent trajectory the country had been following prior to the conflict.EY anticipates a...

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