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As the lockdown eases, Britons prepare to spend their money.

As the lockdown eases, Britons prepare to spend their money.

Britons are getting ready to spend their m

oney. They are on track to have amassed an extra £180 billion in their bank accounts, equivalent to nearly 10% of the UK's yearly gross domestic product, after being deprived of frivolous shopping and various forms of entertainment during coronavirus lockdowns.

After a third lockdown in England, non-essential stores and services such as hairdressers and gyms are slated to return on Monday, with bars and restaurants also preparing to resume its outdoor tables, economists and investors are trying to figure out how much of that money will be spent.

The lifting of coronavirus limitations is expected to result in a spike in consumer expenditure, at least among the wealthier households. However, whether this results in a long-lasting Roaring Twenties-style consumption frenzy in the United States, or a more transient summer of fun, is a hotly debated topic.

The amount of money amassed by UK households during the Covid-19 outbreak was unprecedented in recent decades. According to official figures, more than 25% of family income was left unspent at its peak in the second quarter of the year, an increase of over 18% points from the end of 2019. The savings ratio was 15.6 percent at the end of last year, significantly above the average range of roughly 9 percent.

Drop a mail to andy@harveybowes.com to get a quote for your home loan or check out the facebook pages of UK Smart Property, and Andy Coghlan Harvey Bowes.

#finance #uksmartproperty #AndyCoghlanHarveyBowes #debt #mortgage #mortgagebroker #debt #smartfinance #property #harveybowes #economy #housing #realestate

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