18th July 2011
As reported in The Telegraph the thinktank, which was set up by the accountancy firm Ernst & Young has lowered its forecast for the UK economy for the second time this year, predicting a rise in GDP of just 1.4pc against a previous estimate of 1.8pc with a rise of 2.2pc in 2012 and 2.5pc in 2013.
The report notes the grim reality for a lot of British consumers. "The situation remains pretty dismal for most consumers who, according to official statistics, have been plunged back into recession.
"With inflation set to remain at above 4pc this year and earnings growth subdued, Item sees real household disposable incomes falling by 1.4pc this year, following a decline of 0.8pc in 2010 – the first back-to-back declines in household income since 1976."