Don’t talk the UK into a recession: Lloyds boss warns doom-mongering could become self-fulfilling
The chief executive of Lloyds has warned that Britain risks talking itself into a recession.
While Charlie Nunn acknowledged people were suffering financial hardships, he said: ‘I am concerned that we are collectively talking ourselves into the risk of too negative an outlook.
‘There are pockets of strength in the economy. There are significant parts of the consumers in the UK who have strength and want to spend and create that demand and we can continue to see opportunities to invest in growth.’
Staying positive: Lloyds boss Charlie Nunn (pictured) said there were pockets of strength in the economy and people were still spending, especially on travel
His comments came after the Bank of England this week said many households and businesses were struggling to pay debts.
Governor Andrew Bailey said: ‘The global economic outlook has deteriorated markedly.’
Inflation surged to 9.1 per cent in May and is predicted to rise by as much as 11 per cent this year amid increases in the cost of energy, food and raw materials.
Nunn said the bank had seen the number of customers with persistent debt problems jump by almost a third. ‘
Customers are concerned, and they should be. We have seen some areas where there’s real points of challenge.
‘Around 80 per cent of individuals and UK customers and families have less than £500 worth of savings in their current account and their savings account.
They might have money elsewhere but what we can see is less than £500.’
Lloyds said that around 20 per cent had cut back on discretionary spending to keep more money for essential items.