Recession fears continue despite UK economy growing – ‘very gloomy outlook!’ | Personal Finance | Finance

While this may be an indicator of a shallower recession, the analyst warned that there are still reasons for households to be concerned in the interim period.

Ms Haine added: “However, energy prices are still far higher than historic norms and with the shortage of workers affecting more than a quarter of UK businesses, due to large numbers of people becoming economically inactive – partly driven by high long-term sickness rates and huge NHS waiting lists, as well as an increase in early retirement – there are still plenty of challenges ahead.

“A slowing economy is never good news for household finances as it signals that companies are making less money and cutting investment – something that could see salaries fall and unemployment rise.”

Households are currently dealing with inflation at a 40-year high of 10.7 percent, falling real incomes, higher borrowing costs and hiked taxes, on top of the threat posed by recession.