HSBC warns of worse to come for UK economy

The worst is “still to come” for the UK economy as household spending winds down due to credit shortages and more jobs are shed as a result of record oil prices, a top economist warned today.

Karen Ward, UK economist at HSBC, said in an analyst note that spiralling oil prices will lead to a series of knock-on effects for the UK at a time when it is already being rattled by the credit crisis.

Sterling oil prices are up 10pc in the past month alone and for the household sector, rapid commodity price inflation directly affects roughly 26pc of UK consumption.

Telegraph