Savings ratio to rise
10 Dec 07

Halifax has forecasted the largest rise in the savings ratio in the UK next year. It is predicted that liquid savings are to rise by £80bn next year.

Total savings in the UK economy amount to £4.2trn, which is approximately three times more than the current household debt of £1.4trn.

This increased saving is down to three main factors:

1) Households wanting to relance their balance sheets after a decade of borrowing
2) Precautionary saving following falls in consumer confidence over recent issues facing the real economy
3) The weakening of the housing market and stock market valuations

Links:
Savings rise as economy reaches turning point - Tutor2u (10 Dec 07)