Falling Savings Ratio indicates turbulence ahead

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Re: Falling Savings Ratio indicates turbulence ahead

Post by kevinchess1 » Thu Jul 19, 2018 9:38 pm

Fingers crossed
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Re: Falling Savings Ratio indicates turbulence ahead

Post by Boro Boy » Thu Jul 19, 2018 11:02 pm

Back to the technical aspects; I therefore repeat the Key Figures Chart for easy access...
Key Forcast.jpg
Key Forecast Chart
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Re: Falling Savings Ratio indicates turbulence ahead

Post by kevinchess1 » Fri Jul 20, 2018 6:06 am

The only word that actually counts is ‘Forcast’
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Re: Falling Savings Ratio indicates turbulence ahead

Post by Chadwick » Fri Jul 20, 2018 8:45 am

I'm not an economist, so could someone tell me if I've understood this correctly. IS it saying that, in the event of a "sensible" middle ground agreement on our post-Brexit relationship with the EU, this think tank predicts:

Living costs ('household spending') will increase.
Unemployment will increase.
Inflation will go down.
Interest rates will increase.
The FTSE will drop in value.
£1 will buy more dollars, but fewer euros

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Re: Falling Savings Ratio indicates turbulence ahead

Post by Constantine » Fri Jul 20, 2018 12:55 pm

I'd like to point out that despite the title 'Falling Savings Ratio indicates turbulence ahead', the data presented in the OP makes no reference to the savings ratio. Presumably the household savings ratio.

So here is the data on the household savings ratio.

https://tradingeconomics.com/united-kin ... al-savings

It has indeed been falling. I'm not sure that this indicates 'turbulence'. However, you need savings to fund investment. Lack of investment would be a problem.

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Re: Falling Savings Ratio indicates turbulence ahead

Post by Constantine » Fri Jul 20, 2018 12:57 pm

Chadwick wrote:I'm not an economist, so could someone tell me if I've understood this correctly. IS it saying that, in the event of a "sensible" middle ground agreement on our post-Brexit relationship with the EU, this think tank predicts:

Living costs ('household spending') will increase.
Unemployment will increase.
Inflation will go down.
Interest rates will increase.
The FTSE will drop in value.
£1 will buy more dollars, but fewer euros
No, living costs is CPI inflation.

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Re: Falling Savings Ratio indicates turbulence ahead

Post by Chadwick » Fri Jul 20, 2018 5:16 pm

Constantine wrote:
Chadwick wrote:I'm not an economist, so could someone tell me if I've understood this correctly. IS it saying that, in the event of a "sensible" middle ground agreement on our post-Brexit relationship with the EU, this think tank predicts:

Living costs ('household spending') will increase.
No, living costs is CPI inflation.
OK.
What is "household spending" then? (in real world terms)

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Re: Falling Savings Ratio indicates turbulence ahead

Post by kevinchess1 » Fri Jul 20, 2018 9:10 pm

I think it means Not rent or Mortage
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Re: Falling Savings Ratio indicates turbulence ahead

Post by Constantine » Sat Jul 21, 2018 1:50 pm

Chadwick wrote: OK.
What is "household spending" then? (in real world terms)
The total amount of household spending in £ billion.

The OP refers to forecast % changes in that total.
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Re: Falling Savings Ratio indicates turbulence ahead

Post by Boro Boy » Sat Jul 21, 2018 11:32 pm

I am surprised no CIC Members have commented on the FTSE downward slide prediction.... :eh:

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