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Slump in UK spending and business confidence in Germany fuels fears over the health of the global economy
A slump in spending in the UK and business confidence in Germany have fueled fears about the health of the global economy.
Ahead of this weekend’s meetings of G7 leaders in Bavaria, data from the UK showed consumer spending fell 0.5 percent in May.
And according to data from statistics agency Ifo, business confidence has fallen in Germany this month.
Come loose: Data from the UK shows consumer spending fell 0.5 percent in May and business confidence fell in Germany this month
The numbers came just a day after Germany was forced to move one step closer to gas rationing, as Economy Minister Robert Habeck warned that Russia was strangling the country’s supplies.
G7 leaders will discuss the economy and inflation in particular tomorrow. Energy is also high on the agenda.
A senior US official has said he expected leaders to talk about how we can take steps to further reduce Russia’s energy revenues in a way that stabilizes global energy markets and overcomes the disruptions and pressures we’ve seen. decreases.
Leaders are also likely to discuss the global food crisis triggered by Russia’s brutal invasion of Ukraine.
Retail sales data from the Office for National Statistics (ONS) showed yesterday that Britons spent much less on food, driving the 0.5 percent drop in sales in May.
Prices have soared as the conflict in Ukraine has pushed up the cost of the essential products grown there, such as wheat and sunflower seeds used in cooking oil.
Kevin Brown, savings specialist at Scottish Friendly, said: ‘A staggering 44 per cent of adults, surveyed by the ONS, say they have bought less when shopping in the past two weeks.’
Slowing sales will increase fears that the UK is heading for a recession.
Economists are increasingly aware that the US is heading for a slump — this week Goldman Sachs said it sees a 30 percent chance the U.S. will slip into recession next year, up from 15 percent.