People have earned £140 billion over the past year.
The Prime Minister said that households and businesses with high cash will support the UK’s economic recovery next year as spending money has accumulated during the lockdown.
People have taken around £140 billion over the past year and paying £100 billion on corporate balance sheets, bringing confidence back before the pandemic and economic activity rises rapidly, Sunak said. He spoke to the CEO Council Summit of the Wall Street Journal. .
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“I look forward to reopening over the next few weeks and months, so there are signs of caution and I can see it in the data. I would like it to be maintained throughout the rest of the year I’m hoping for that,” he said.
Sunak’s comments are timely, with a survey by UK PMI revealing that UK manufacturing had grown at its fastest speed in nearly 27 years in April.
Mortgage loans rose £11.8 billion in March as they tried to take advantage of stamp duty holidays with their first £500,000 purchases before the policy was withdrawn in June.
In recent weeks, economists have upgraded their forecast for UK GDP growth this year from 5% cent to 7%. This was the last seen pace in 1941, and the Bank of England hopes to see a rapid recovery with its latest forecast tomorrow.
“We have returned to pre-pandemic levels of consumer confidence. Our Chief Financial Officer is very positive. Various manufacturing and service indices are traded above (trends), and we have We know there is a huge amount of excess savings in both the domestic sector, approaching £140 billion and £100 billion sitting on the corporate balance sheet,” Sunak said.
The UK fell into its biggest recession of 300 last year as the economy shrank 9.8%. But this time, households and businesses are building up excess cash and can go in some way to help the UK recover.
