In all the circumstances, considering what has happened around the world in recent years, more cautious behaviour by households is not surprising. Nor, I would argue, is it unwelcome. With the stimulus from the terms of trade and the likely investment build-up, the economy can cope with more saving by households for a time.
On the other hand, to expect it to absorb a major surge in consumption at the same time as an historic increase in  BIS Review 160/2010  5  investment is also occurring would be rather ambitious. In fact, we probably need private saving to remain on a higher trajectory, and we will also need public saving to rise, as scheduled.