UK households well-placed to endure renewed fiscal squeeze

UK households have rarely had it so good - no inflation, strong jobs growth, reviving earnings, a breather from austerity and falling borrowing costs. As a result, Capital Economics expects that real household spending could grow by a solid 3% this year, the most for a decade. 

And while the fiscal squeeze will resume in earnest next year, it is unlikely that the recovery in spending will slow very sharply in 2016.