Growing concerns over the outlook for the economy have started to take their toll on equity markets. The 10% fall in the FTSE 100 largely reflects global issues. Nonetheless, it took equity prices back in line with other asset prices, such as bonds. The fall in the FTSE is unlikely on its own to have much of an impact on the wider economy. However, combined with falling house prices and rising inflation, it adds to the pressure on consumers’ finances and is likely to contribute to a marked slowdown in GDP growth both this year and next.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services