Persistent low saving out of current income suggests that households believe that gains in their net worth from the increase in the prices of equities and homes will not be reversed, and that jobs and income will continue to rise at a healthy pace. The key new element in the picture is the behavior of the business sector.
Apparently, the persistence of good growth in sales and profits has been restoring business confidence. At the same time, low interest rates, in part a product of accommodative monetary policy, are also playing an important role in encouraging investment in houses and business capital equipment by holding down the cost of borrowing and spending.