U.K. Household Savings Probably Buoyed by Virus Lockdown

(Bloomberg) -- A hefty program of income support from the U.K. government and a forced reduction in spending while in lockdown have buoyed aggregate household savings. Bloomberg Economics estimates the household saving ratio jumped to a little above 21% of disposable income in the second quarter from 8.4% in the first. The speed at which saving drops in subsequent quarters will be central to the the pace of the recovery -- concerns about a future job and income prospects could prompt households to maintain a bigger saving buffer than they did prior to the crisis.

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