QE has lost its bite, says Bank of England deputy governor Paul Tucker Economists added that the data provided fresh evidence that the recovery is gathering momentum, with the pressure on household finances finally easing and businesses finding the confidence to invest their record cash piles. James Knightley, an economist at ING, said: "Significantly, the squeeze on household finances is easing with real household disposable income rising 1.9pc, the largest quarterly rise since the second quarter of 2009. This leaves real after-tax household incomes 1.7pc higher than the same point last year. Chris Williamson, UK economist at Markit, said: "The big improvement was seen in business investment, which rose 0.9pc instead of declining 1.5pc, as had been previously estimated. It is an encouraging sign with regard to corporate health. The revisions also painted a picture of an economy less reliant on government spending. Trade, though, remained a major concern, with the current account deficit hitting a record £20.8bn - prompting Chris Crowe, a Barclays economist, to warn "efforts to rebalance the economy towards net trade may be foundering." The recovery is still expected to be slow.