Will the high saving continue?
After ten years of a falling saving ratio, British households' thrift has increased sharply over the past two years (see chart), but will this phenomenon go on?
The fact that people are losing their trust issues with the economy and that they believe their own financial positions to improve, could indicate a stabilisation of saving.
On the other hand, equity and house prices are still relatively low and after having built up high debts, people may want to rebuild their reduced wealth by saving more.
Over all, we can put that people will probably keep up the high saving over the coming year.
Anesa Selimovic
2 opmerkingen:
trust issues?
Overall: 1 word
we can put that: should be left out
Could be clearer and more coherent.
(GJ)
After ten years of a falling saving ratio, British households' thrift has increased sharply over the past two years (see chart), but will this phenomenon go on?
People may want to keep on saving to rebuild their reduced wealth as the value of their houses is still relatively low and their debts are high.
On the other hand, consumers are regaining trust in the economy and believe their financial positions are improving, which could indicate a decline of saving.
Overall, different reasons can be given to expect both an in- and decrease, but people will probably keep up the high saving over the coming year.
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