After ten years of a falling saving ratio, British households' thrift has increased sharply over the past two years (see chart), but will this phenomenon go on?
The fact that people are losing their trust issues with the economy and that they believe their own financial positions to improve, could indicate a stabilisation of saving.
On the other hand, equity and house prices are still relatively low and after having built up high debts, people may want to rebuild their reduced wealth by saving more.
Over all, we can put that people will probably keep up the high saving over the coming year.
Anesa Selimovic
