Savings hit record 50 year low

30 June 2008

Economy on “brink of recession”

According to a report from the Office for National Statistics (ONS) Britons are savings less now than they did 50 years ago when records began in 1959.

The report says households saved just £2.6bn in the first three months of this year, compared with £7bn in the previous quarter.

According to thisislondon.co.uk, “it suggests the economy is on the brink of recession, with growth from January to March only 0.3 per cent, the lowest level in three years”.

After hearing the news, experts have warned Britons to start thinking about the days ahead and put away more savings.

Peter Dixon, economist at Commerzbank, said: “Households are assuming the good times can go on forever, and they can continue to spend without worrying about what will happen to their incomes.

“They are going to have to tighten their belts,” he warned.

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