Research Briefing | Apr 2, 2021

UK | 2020 ended with some hopeful potents

UK 2020 ended with some hopeful potents

Q4’s national accounts revealed GDP falling not quite as far short of pre-Covid levels as previously believed. And a reversion of end-2020’s elevated saving ratio should support a strong, consumer-led, recovery as the economy reopens.
A net repayment of consumer credit in February meant households stayed in retrenchment mode, while the mini-boom in the housing market lost some steam. But signs of spring emerged in March’s decade-high manufacturing PMI.

What you will learn :

  • The household saving ratio of 16.1% in Q4 2020 was some way from the record high of 25.9% reached earlier in the year.
  • Excess savings have continued to build in early 2021.
  • Consumers’ appetite for credit remained weak in early-2021 while heat in the housing market showed signs of dissipating.
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