Household savings hit record low

Latest ONS data

Hannah Godfrey
clock • 1 min read

Household savings have reached a record low, with Brits saving on average just 1.7% of their earnings, according to the latest figures from the Office of National Statistics (ONS).

The ONS household savings ratio fell from 3.3% in the fourth quarter of 2016 to 1.7% in Q1 2017, having already started to decline in July 2015. The ONS said the 48% drop was partly due to an increase in taxes on income. It said: "The underlying trend is downwards, reflecting relatively strong consumption volumes, increasing consumer prices and subdued wage growth." However, as savings dropped, the household consumption expenditure ratio increased 2% to 0.97% in Q1 of 2017, just below the peak of 0.99% in Q1 2008. Meanwhile, the UK economy grew by 0.2% in the first quarter of 20...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Targeted at sustainable, forward-thinking finance professionals

Professional Adviser
clock 10 May 2024 • 1 min read
Defaqto: 'No appropriate and compliant way to compare MPS portfolios'

Defaqto: 'No appropriate and compliant way to compare MPS portfolios'

Tech firm to debut a performance comparator tracking solutions’ data

Hope Coumbe
clock 09 May 2024 • 1 min read
Assessing investment decisions made in the heat of the moment

Assessing investment decisions made in the heat of the moment

'Investors were panicking, thinking no one would ever go outside again'

Chris Justham
clock 08 May 2024 • 2 min read