Economy not out of the woods with trends set to continue into 2010

With three-quarters of the year now behind us, thoughts turn to reflect upon the year that is drawing to a close and what 2010 will bring.

One area of consideration relates to the trends that have been in evidence throughout 2009, and whether or not they will continue to influence the UK in the year ahead. For example, it is most likely we will see a continuation of the factors that have served to dampen consumer confidence in 2009 – ongoing corporate belt-tightening, feeding through into further increases in unemployment and muted wage growth. There will also likely be a continuation in the rise in the household savings ratio towards a more sustainable long-term level, as consumers seek to get their domestic balance sheets...