Lidl to open 40 UK stores in £500m investment and Deliveroo takeover 'bid' - but economic storm clouds gather

Good weather usually brings good news for business, and with UK temperatures set to hit 28°C this week, certain sectors will be smiling.

But - and forgive the extraordinarily tired metaphor - the storm clouds of economic trouble are looming ever larger. EY has warned that US tariffs will hit UK spending and investment hard, and in my view, with 16 per cent of our goods exports heading to America, this isn’t a distant risk.

Unless Rachel Reeves pulled off some quiet trade wizardry during her Washington visit, the UK economy could soon be feeling the chill. And that's not the only concern.

The AI revolution is only just starting to roar, and London has now dropped out of the world’s five wealthiest cities. The signs of a shifting, uncertain economy are everywhere.

There is some good news for workers, though. Job vacancies are up, driven by demand for nurses and social workers, according to Adzuna. Average advertised pay has risen by 8 per cent to almost £42,000.

But in my view, rising vacancies often mean businesses are struggling to find staff — and when that happens, they hike wages. Higher wages sound great, but they can fuel higher prices, putting more pressure on inflation.

And if you want a glimpse of how consumer habits are changing, look no further than Gen Z. New data shows gym memberships, skincare routines and streaming services are now considered essential monthly costs - and they won’t give them up easily, even under financial strain. Possibly good news for those selling these products?

Meanwhile, on the other side of the generational divide, over-60s are sitting on a staggering 56 per cent of the UK’s housing wealth, according to Savills.

Over-75s hold nearly a quarter, while under-35s scrape by with just 6 per cent. In all, over-60s are sitting on £2.89 trillion of net property wealth. So yes, there is still wealth in the economy - and money is still moving, too.

US firms are still looking to Britain, with Deliveroo the latest to attract interest from DoorDash in a potential £2.7 billion deal. And Donald Trump, tariffs aside, still seems to view the UK as a friend. Sir Keir Starmer may have judged that one just right. For now, the economy still ticks along - for some. The real question is: when the storm finally breaks, how many will be left standing?

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