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Some closely-watched composite leading indicators for the U.K. economy, and for many others, are flashing red.
Low-income households will feel the full force of the Covid-19 downturn and will have to slash their expenditure aggressively.
Our base case remains that the slowdown in quarter-on-quarter GDP growth to about zero in Q2 is just a blip, and that the economy will regain momentum in Q3 and sustain it well into 2020.
Today's labour market figures likely will bring further signs that firms are recruiting more cautiously and limiting pay awards, due to still-elevated economic uncertainty.
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