Money Distilled

How the UK’s Consumers Turned Into Savers

British households are in good shape. So what might get them spending again? 

The UK consumer’s piggy bank is unusually full.

Photographer: Jennifer West/Bloomberg

Welcome to the award-winning Money Distilled newsletter. I’m John Stepek. Every week day I look at the biggest stories in markets and economics, and explain what it all means for your money.

Yesterday, I pointed out that one reason why rising interest rates haven’t had a catastrophic or even notably detrimental impact on the economy is because, during the post-2008 period, households (and companies) were de-leveraging. In effect, they acted as though credit was tight, even though interest rates were at or near 0%.