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Accountancy group predicts slower growth

06 Mar 2015

The Institute of Chartered Accountants in England and Wales (ICAEW) has warned that the slowdown in business spending could have an impact on economic growth.

With less investment spending from UK companies, the accountancy group has revised its 2015 growth forecast down to 2.4%. Their previous prediction of 2.6% would have been the fastest rate of UK growth since the financial crash and the strongest of the G7 countries.

ICAEW Chief Executive, Michael Izza, said: ‘The potential slowdown in GDP growth is a clear sign that UK firms are pressing the pause button on their attempts to drive economic growth’.

He continued: ‘We cannot overstate the effect of the general election either. Businesses remain concerned about the potential makeup of the next government and its policy towards business. Any steer towards a potential exit from the EU is also causing anxiety. All this means consumers are key to the recovery’.