Counting on Increased Sales to Britain? Think Again.

British households have a negative savings ratio after subtracting mandatory pension contributions, according to an analysis by ING Economics.

The fact the British are consistently spending more than they earn has significant implications on three levels. First. it suggests UK consumers are significantly more vulnerable to the mounting energy crisis than just about anywhere else in Europe. Second, it suggests British households' ability to handle the cost-of-living shock is vastly overstateed, and third, the ability of British consumers to inbcrease their bev/al purchases is severely limited.

State pension contributions "are valuable. But they aren’t much help when the cost of living bites today," ING notes.