Household consumption grew very strongly in the second quarter, supported by a further decline in the household saving rate and an acceleration in household borrowing. In the tougher banking regulatory environment this year, however, those trends aren’t going to be sustained for too much longer, with or without higher interest rates. In addition, households can no longer count on rapidly rising housing valuations to limit the need for more traditional saving for retirement.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services