UK growth outlook slashed as tariffs hit inflows

Darkening future: A worker in action at one of British Steel’s sites in Scunthorpe, northern England. Shrinking exports and more subdued household spending are expected to snuff out the strong pick-up in the UK’s growth. — AFP

LONDON: The UK economy will grow half as quickly as previously expected in 2026 as Donald Trump’s sweeping tariffs hit business investment, according to EY Item Club.

The influential forecaster warned of shrinking exports and more subdued household spending that will snuff out the strong pickup in growth previously projected.