NIESR upgrades UK economy but warns on consumer spending

The National Institute for Economic and Social Research (NIESR) said the UK would grow by 1.2% this year and by 1.8% in 2014, the Telegraph reports. This is an increase of 0.3% in both years on its outlook from three months ago. It said this was driven by a "rise in the prospectus for consumer spending growth… at the expense of household saving." The report said households have cut their savings rate from 6.7% last year to 4.2% already and NIESR expects that to fall to 3% soon. Spending has therefore picked up, boosting the economy. However, the report added NIESR warned that growth ne...