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Real income revival to spur recovery

A combination of very low inflation, reviving growth in earnings and further robust jobs growth should ensure that households’ real disposable incomes grow in 2015 at their fastest annual rate since 2003. Accordingly, we think that the recovery in consumer spending could gather a little momentum and expect growth in real spending to pick up from 2% this year to about 2.5% in both 2015 and 2016.

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