Sharp rise in savings 'flatters to deceive' - PwC

UK national accounts data for Q3 2009 showed a rise in the household savings ratio to 8.6%, a full percentage point above its long-term average of around 7.6%. But economists at PwC warn the increase was driven mostly by temporary cyclical factors boosting household disposable income, rather than significant cuts in household spending or large net inflows into bank accounts and other savings instruments. In a warning to retailers and consumer service providers, it says it expects real household disposable income growth to turn negative in 2010, leading to a renewed fall in the headlin...