Household savings hit record low

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...