The Guardian: "Consumer-led recovery slows as caution sets in"

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"Fears that Britain's consumer-led recovery is losing momentum are increasing, amid signs that the rising cost of living is hitting confidence and high-street spending.

"The latest survey of sentiment towards the economy shows that the steady rise in confidence seen the start of the year has slowed in the past month.

"... Stephen Lewis, chief economist at Monument Securities, said:

"To the extent that rebalancing of the UK economy is occurring, the figures strongly suggest it is in the wrong direction, towards consumption and away from net exports.

It is far from clear that the pick-up in consumer spending is prompting companies to step up their capital expenditure. Spending on transport equipment, the strongest element in capital outlays over the quarter, is characteristically lumpy, and not especially responsive to short-term changes in the demand outlook. The UK authorities, however, appear to have long since abandoned their rebalancing goal in favour of stimulating growth, from whatever source and at any cost."