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Credit-card lending is growing strongly, despite weak wages.
Perhaps the IoD should ponder the Bank's concern about weak wages.
For example, the budget predicts solid increases in household consumption, but at the same time predicts very weak wages growth: As Fairfax's Michael Pascoe notes, improved households consumption with weak wages growth is an odd mix.
A recovery based on low investment and weak wages could well stutter before 2015.A relentless attack on the things holding back investment starts with monetary policy.
In February, Japan's consumer confidence dropped to its lowest level in five years as rising oil prices and weak wages sapped households' spending power.
High unemployment and weak wages have largely constrained retailers' pricing power, but June proved that higher energy prices beyond the retailers' control could be significant.
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The same goes for weak wage growth.
But poor productivity means weak wage gains are not as disinflationary as they appear.
Even fantastic headline numbers, like 4.6% unemployment, disguise weak wage growth and sagging labour force participation.
But weak wage inflation will not last for long if growth remains this strong.
Weak wage growth in the UK has prevented incomes from fully bouncing back, the OECD said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com