A survey by National Savings & Investments late last year has found that people in the UK are now saving the highest monthly amount since these records began in September 2004. The slow down in consumer spending and the debate surrounding increasing personal debt is being given as the cause for this. Britons have saved an average of £173.43 a month, which is equal to 7.16% of their income, and up from 6.7% last autumn. Young adults aged 16 to 34 are the UK's best and most disciplined savers. The number of regular savers in this group rose by 60%, while those aged 25 to 34 saved 8.58% of their income.
Our view:
This is good news. Let us see how long this lasts when interest rates go down.