Pound crashes at a new 37-year low against US Dollar.

The Great British Pound (GBP) is at a new low after 37 years compared to the United States Dollar (USD). This is due to the sharp rise on the cost of living within the UK, which allows the retail sales fall just as fast.

The state of the economy brought a vast number of new concerns as the 1.6% drop in sales volumes was a larger drop than predicted. Fortunately, the Bank of England has predicted that the UK will fall into recession at the end of this year.

Olivia Cross, an assistant economist at Capital Economics, has stated that the economy is “already in recession”. A recession is where the economy gets smaller for two consecutive three-month periods. She did further state that retail sales are most likely to only keep struggling while the cost-of-living hits harder, especially over winter.

Ms Cross stated that due to the government intervention of the energy bills crisis, the recession will be “smaller and shorter” than it was expected to be previously. Without intervention of the typical household capped at £2,500 for two years, this figure would have been £3,549 in October, and then rise up again in January to £5,300! Even with the energy bills relief, household incomes are still expected to significantly fall over the next 12 months or so.

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