UK set for recession and pound test of historic lows, survey finds

More than four-in-five respondents expect a recession within a year, while most see the pound at risk of touching early-pandemic lows and bad days ahead for British stocks and bonds.

Close to three-quarters of respondents in the  survey were bearish about the country’s future at a time when the cost of living is surging, growth is slowing and relations with its biggest trading partner -- the EU -- are souring. Picture: David Levenson/Bloomberg

Six years after Britain decided to leave the European Union, market participants see a country in crisis: The UK is stumbling toward recession as inflation spirals while the pound is on course to retest historic lows.

Close to three-quarters of respondents in the latest Bloomberg MLIV Pulse survey were bearish about the country’s future at a time when the cost of living is surging, growth is slowing and relations with its biggest trading partner -- the EU -- are souring. More than four-in-five expect a recession within a year, while most see the pound at risk of touching early-pandemic lows and bad days ahead for British stocks and bonds.