It comes as signs of growing pessimism about the UK economy have emerged.
Bank of America’s UK consumer confidence gauge has continued to decline over the past two weeks, falling to its lowest level since April, a move analysts said was due to tax hikes, [the] energy crisis, Covid case, shortages and inflation.
The numbers precede next week’s new GDP data, which economists say will likely show August was a final hurray for growth after the lockdown before inflation and economic turmoil started to bite.
Deutsche Bank’s Sanjay Raja predicted monthly growth of 0.3%, an acceleration from a limited gain in July.
He said: “We don’t think the recovery in growth will last very long, at least not as long as supply side constraints continue to hamper demand.
“With increasing supply frictions, biting inflation and falling confidence, we expect the rest of the year to see a more noticeable slowdown in activity. ”