ITEM club in dire economic warning
Household debt crippling economy says E&Y think tank
& Young ITEM Club has warned that the economy is ‘skating on thin ice’
because of excessive household debt.
The ITEM club said the current benign macroeconomic environment had made both
individuals and firms overly relaxed about risk, inflating asset values and
transactions and boosting borrowing and spending.
‘Many people are following the chancellor’s lead and are borrowing to finance
consumption,’ said Peter Spencer, the ITEM Club’s chief economic adviser.
The ITEM Club predicted the economy will expand by 2.9%t this year, in line
with the chancellor’s 2.75% to 3.25% forecast.