LONDON: Despite the bullish spin put on the latest UK economic data by the Office for National Statistics, Britain's prosperity is ever more reliant on consumer spending as opposed to export growth.
Consumer spending, much of it credit-fuelled, drove growth in the second quarter to its highest level in two years - up 0.8% on Q1 and 2.6% year-on-year.
A proportion of the growth is attributed to soccer World Cup-related purchases such as flat screen TVs. However, economists fear that price pressures will trigger another increase in interest rates by the Bank of England before the year end.
Data sourced from Wall Street Journal Online; additional content by WARC staff