Slowing consumer spending poses a challenge for Gordon Brown’s growth forecast. If the figures are to be achieved then the corporate sector needs to step up to to the plate with increased business investment and faster export growth. The UK appears to be nearing the end of the current economic cycle which most believe started in 1999. As government and consumer growth slows, then the slack needs to be taken up by business investment. If that does not happen then the 50 quarters of positive growth will draw to a close.
