Skip to main content

National accounts on balance dovish

The upward revisions to consumption mean that household spending has more momentum than previously thought and raise the risk that households will spend most of the income tax cuts due on 1st July. However, the revisions also mean that the household savings rate is lower than earlier reported. We suspect that households will use most of the income windfall to restore their savings buffers and only expect a major acceleration in consumption growth next year.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.