Robert Chote [head of the Office for Budget Responsibility] is saying the potential for the trend of consumer spending being supported by running down savings and consumer debt continuing is not plausible, but that they expect wages to pick up which will ensure spending growth continues (albeit at a slower rate), writes Alex Little.
The thing is, though… in order for the deficit to be eliminated over the next four or five years, that’s exactly what the OBR are forecasting needs to happen. Household debt needs to rise and consumers need to spend more than income on an unprecedented scale.
So either Chote doesn’t understand the implications of his own forecasts, or it’s his way of saying they are just ‘not plausible’.
Read the full article here.
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