Saturday, 5 February 2011

UK Sectoral Financial Balances.

After reading Randall Wray's piece on sectoral balances and Edward Harrison's analysis of the situation (hat tip to Scott) I thought I'd draw up the equivalent chart for the UK.



However its not who you think that appears to be doing all the net-saving. The traditional UK five sector analysis shows a disturbing lack of saving by the Household sector in the last few quarters. And which private corporations are hoarding all this money?





Source: Office of National Statistics, tables RPZD, RPYN, RQAW, RPZT, RQCH, DJDS (Seasonally adjusted Net Lending/Borrowing per sector plus residual error) and YBHA (Gross domestic product at market prices, seasonally adjusted)
Updated to include public corporations in non-financials and to show residual error 23-Feb-2011