Of course, the stimulus to domestic production will depend on the extent to which the additional demand is met by a temporary drawdown of inventories or an increase in imports rather than by an expansion in domestic output.
Therefore, while a close monitoring of wage developments remains essential, at present the most likely outcome remains a further decline in real consumer wages and the labour share of income. Our consumer expectations survey points in a similar direction. It found that households anticipate their real wages to fall by around 6% over the next twelve months (Slide 7, left-hand chart).