Households 'saving more'

Households in the UK have bolstered their savings efforts as their finances are squeezed even tighter.

Official data from the Office for National Statistics found that families put 7.4 per cent of their resources to one side between April and June 2011, up from 5.9 per cent in the previous quarter.

It is thought that the rise was driven by an unexpected 1.2 per cent rise in disposable incomes over the quarter, following three months of drops.

However, the saving ratio is still lower than in previous years, having stood at 7.5 per cent in 2010 and 7.8 per cent in 2009.

Commenting, Samuel Tombs of Capital Economics told the Press Association: "Households have made further progress towards repairing their balance sheets.

"A sharp and unexpected 1.2 per cent quarterly rise in households' real disposable income enabled them to increase the proportion of their income that they save from 5.9 per cent to 7.4 per cent."

Recent statistics from Santander suggested that Britons are currently saving more than they did last year with more people looking to take advantage of the best savings rates.

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2011-10-26 11:29:48 © Moneyextra.com