JGFR: UK savings on the ebb

26 January 2007
The intention to save is ebbing among British consumers under pressure from higher utility prices and rising housing costs, according to a survey from analysts John Gilbert Financial Research (JGFR).

In the last quarter, only 31 million adults expected to save or invest their money, compared to 35 million in December 2005, the study finds.

But consumers have also become more cautious about taking out credit. In December 2005, eight million people intended to take out a loan, whereas only 5.5 million now intend to do so.

John Gilbert, who compiled the survey, commented that customers are seeing their savings intentions thwarted: "Something unreal is happening to the consumer who has tried over the past year to manage finances better."

"Everything seems to be going against them," he continued.

But a survey this week from Unbiased.co.uk claimed the exact opposite, that Britons are both saving more and borrowing more.

Higher savings, of £96 billion in the nine months to September 2006, matched higher borrowing, as Britons took out £40 billion in loans, suggesting that those Britons who do manage to put money aside are often unable to do so without an extra fillip from a financial provider.

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