Britons 'saving not spending'

21 February 2006
Britons are saving more and shunning the high streets, according to new figures.

UK residents were ten per cent more likely to save than they were during the same period last year, while the number of people spending has gone down, research from Legal & General's MoneyMood survey reveals.

Around 65 per cent of Britons were in the mood for making savings at the end of last month – up from 59 per cent in January 2005.

"This is the highest figure we've yet recorded over 17 months of tracking and indicates the MoneyMood of the nation is firmly in 'save' mode," Julia Clayworth, head of direct investments at Legal & General, said.

She said that this new savings climate might be due to Britons' overspending during the festive season.

"MoneyMood found that people who were in the mood to save in the run-up to Christmas spent around 40 per cent more over the festive season than they anticipated.

"People in the mood to spend only spent around seven per cent more than anticipated at Christmas," Ms Clayworth said.

In addition to the rise in the percentage of Britons in the mood for saving, the survey revealed that just one in four consumers were planning a significant amount of spending – four per cent down on the same period last year.

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