Fidelity's Spreadbury: 20% chance of UK double dip

Fidelity's bond manager Ian Spreadbury has warned the UK has a 20% chance of returning to recession as consumers face mounting pressure from taxes, commodity price rises and high unemployment.

Spreadbury, manager of Fidelity's £2.5bn MoneyBuilder Income fund and £626m Strategic Bond fund, said the risk of the UK returning to recession is "significant". "The consumer has been a driver of the economy and now there is a big risk of a return to recession. If I had to put a number on it I would say there is a 20% chance of a return to recession." Spreadbury's base case is low growth and low inflation in the UK for the foreseeable future, with rates to remain below 3% for the next two years. However, he said the UK "could not rule out a double dip in growth" after the outlook ...