Double-dip recession risk overplayed, HSBC chief economist says

A bigger concern for Turner was the lingering impact of consumer debt on spending and growth for the UK economy. ‘The question is how to get people spending again with that debt overhang,’ he said.

Rising taxes, falling incomes and the rising price of essential goods were an added squeeze on consumer confidence, said Turner.

Ian Smith of Central Financial Planning questioned how some companies like Whitbread could produce results which pointed to increased consumer spending and confidence despite the wider trends.

Turner said that consumers were downtrading and that the average figures for consumer indebtedness were misleading.