Economists are worried that the heavy reliance on consumer spending to fuel the country’s growth could put the economy at risk if the Bank of England tightens policies.
If growth remains skewed toward the consumer “it would make the economy very sensitive to interest rates and would limit the extent to which the MPC would be able to raise interest rates,” Astorri said.
U.K. related ETFs include:
- iShares MSCI United Kingdom ETF (NYSEArca: EWU): up 14.8% year-to-date
- iShares MSCI United Kingdom Small Cap (NYSEArca: EWUS): up 30.6% year-to-date
- First Trust United Kingdom AlphaDEX Fund (NYSEArca: FKU): up 21.5% year-to-date
- WisdomTree United Kingdom Hedged Equity Fund (NYSEArca: DXPS): up 0.9% over the past three months; started trading June 28
- db X-trackers MSCI United Kingdom Hedged Equity Fund (NYSEArca: DBUK): down 1.6% over the past month; started trading Oct. 1. [ETF Spotlight: DB’s Currency-Hedged U.K. ETF]
For more information on the U.K., visit our United Kingdom category.
Max Chen contributed to this article.