Consumer spending accounts for a whopping 53 per cent of the economy (real GDP), so the degree to which households decide to spend or save is critical to the...

Consumer spending accounts for a whopping 53 per cent of the economy (real GDP), so the degree to which households decide to spend or save is critical to the economic outlook. A major positive for spending of late is rising household wealth - which, as seen in chart below, tends to be associated with a lower household saving ratio. That said, we should not overestimate the wealth impact, as weak income growth poses a major offsetting downside risk to consumer spending. Click on the link for more: (VIEW LINK)