The Tre Professore has told us this morning that very few people understand UK economic statistics. Apparently, because the ONS site isn’t very good.
Hmm, it could be because some people just don’t understand economic statistics:
What is happening is aberrational. Households are saving almost 30% of their incomes.
Of course, that helps explain an economic downturn. This translates into a lack of demand in the economy.
No, no it doesn’t. The numbers being quoted are up to the end of June. We’re in November now, they are not current numbers. Further, the Telegraph can tell us what is actually going on:
The Office for National Statistics’ more detailed breakdown of the April-June quarter – the worst decline on record – showed average household savings jumping to a record high of 29.1pc after the shuttering of all but non-essential shops.
Household spending over the quarter sank by a record £80.5bn
The UK economy is 21.8pc smaller than it was at the end of last year.
But thanks to the effect of the furlough scheme, as well as support for self employed workers, employee compensation “only” fell 2.2pc over the quarter.
People couldn’t go out and spend during lockdown. But they still had incomes. If you can;t spend then you must save. QED.