"The saving ratio reached an historic low of 1.7% in the first quarter of this yeary"
The Institute says the economy "continues to grow below its long run trend of 0.6%".
NIESR’s latest quarterly forecast, published in May, projected GDP growth of 1.7% per annum in 2017 and 1.9% in 2018.
Rebecca Piggott, Research Fellow at NIESR, said: “We estimate that output grew by 0.3% in the second quarter of 2017. Growth in services has offset a contraction in industrial output, yet remains subdued when compared with last year.
"The saving ratio reached an historic low of 1.7% in the first quarter of this year, implying that, so far, households have reduced their saving to cushion the effect of falling real incomes on consumption as inflation rises”.
