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ECONOMICS COMMENTARY
Mar 28, 2014
UK upturn spurs rise in business investment, but household savings fall
Official data confirm that the UK economy grew 0.7% in the final quarter of last year, but also brought mixed news on the make-up of growth. On one hand, we saw confirmation that business investment is rising at a robust pace, which adds to signs of the sustainability of the recovery, but the trade deficit widened to the second highest on record. A fall in the savings ratio also suggests current household consumption is too reliant on people delving into their savings and therefore unsustainable, unless of course incomes start to rise.
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