Stubborn price pressures and a recession in the second half mean real disposable incomes are set to continue shrinking through year-end. With the savings rate now barely higher than it was pre-pandemic, we now expect households to pare back spending in H2, leading to a deeper economic downturn than we previously anticipated.
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:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services