Household savings hit 40-year low
UK households saved less in 2008 than at any time in the previous four decades, new figures have revealed.
Data from the Office for National Statistics (ONS) showed that the proportion of household outlay on savings was 1.7% in 2008 - the lowest level since 1970 and considerably below the average of 7.6% for the period.
However, more recent figures indicate that the savings ratio has improved since then, reaching an average of 4.8% in the first half of 2009.
The ONS report stated: "It seems that households have reacted to the economic recession of 2008 by increasing the proportion of income they saved, a similar pattern to previous recessions."
The report, which is part of the ONS Social Trends survey to gauge people's spending habits, also indicated that the total household allocation on housing, water and fuel had also reached its highest level in almost 40 years.
Spending in these areas accounted for 21% of total outgoings for 2008, up from 15% in 1970, while that on food and non-alcoholic drink dropped from 21% in 1970 to 9%.
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