UK current account deficit shrinks, but savings ratio hits record low – business live

Latest data shows UK households feeling the pinch, as Britain posts a trade surplus with non-EU countries

The fall in Britain’s current account deficit is partly thanks to the slump in sterling since the Brexit vote.

The cheaper pound makes imports pricier and exports more competitive, so it should cushion UK firms from the impact of Britain leaving the EU.

The uncertainty created by Brexit led to some weakness in business investment during the quarter, however the weakness in Sterling did lead to an improvement in the current account, with the trade component leading the charge.”

Dario Perkins of City firm TS Lombard says there are two reasons why Britain’s savings ratio has hit record lows:

Could be because 1) £ squeezed real incomes but we’re in denial, or 2) we’re expecting a massive post-Brexit productivity boom. You decide

Continue reading…

Read full original article »