According to David Bharier, the head of research, the current path of sluggish growth is unlikely to change unless significant alterations occur in the external environment.
Recently released official figures revealed that a recession in the eurozone was triggered by a decrease in consumer spending at the start of the year.
Surprisingly, the economy of the euro area contracted by 0.1% during the first three months of the year, following a similar contraction in the previous quarter of 2022. The European Central Bank is set to decide on interest rates in the upcoming week.
In addition, last week saw the highest number of Americans filing for unemployment in a year and a half, with an increase of 233,000 claims to 261,000. This exceeded analysts’ expectations by 26,000 claims, further highlighting the impact of high interest rates on global economic activity.
These figures present a mixed outlook as the Federal Reserve evaluates whether to raise borrowing costs for the 11th time next week, marking the most aggressive round of rate hikes since the 1980s.
Experts predict that businesses in the UK should anticipate further challenges as implemented interest rate increases begin to weigh on consumers.
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