Monday , May 17 2021
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The UK’s splash-the-cash summer has a distribution problem

Summary:
It’s fair to have assumptions about how the British economy might reset after the Covid crisis, but at the moment, it feels a little like we’re flying blind. For every expert touting the death of commercial real estate, you’ll find a punter exalting the delights of the commuter life. The same goes for infrastructure spending, or the welfare state. One thing is more certain though -- in aggregate, household balance sheets are bursting, with Morgan Stanley analysts reckoning that the excess savings available to spend will be around £170bn once the UK re-emerges from lockdown at the end of the second quarter (barring any more nasty surprises). It’s to be expected. No one has been able to go out and spend on consumer goods and services -- whether it’s nightclubs, tattoo

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