Standard & Poor’s has warned that the UK economy is ‘losing momentum’ as demand for credit from businesses softens.
In a report issued this morning the Credit rating agency warned that whilst business needs were weakening the “consumer spending spree” is also cooling off.
Consumer spending especially has been a driving force behind economic growth in recent times.
S&P said that despite better than expected growth figures since the referendum signs are starting to appear that the economy is weakening.
Despite this it said that things are still relatively favourable following strong fiscal management from the Bank of England.
The report said: “Overall, we think credit supply conditions remain relatively favourable and are supporting the economy, in particular thanks to the BoE’s continued very accommodative stance.
“However, these favourable conditions will not be able to completely offset the expected adverse impact of pronounced Brexit-related uncertainty and the inflation squeeze on household budgets in particular.”
There’s no change to the UK’s credit rating which has been it’s been unchanged since it was cut following the Brexit vote.