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ONS: Household savings ratio in Q2 estimated at 10.0%

ended 30. September 2024

The household saving ratio is estimated at 10.0% in Quarter 2 2024, up from 8.9% in Quarter 1 (Jan to Mar) 2024, according to official data published this morning. The increase in the savings ratio was 1.1 percentage points in the latest quarter. During Quarter 1 2024, non-pension saving contributed 5.4 percentage points to the saving ratio with pension saving contributing 4.6 percentage points. In the previous quarter both measures are showing identical contributions. This is the first time since the coronavirus (COVID-19) pandemic that non-pension saving has been higher than pension saving. This was driven by a rise in income from wages and salaries of £4.0 billion, an increase in households' social security benefits in cash of £1.8 billion and a fall in households' total social contributions paid of £1.8 billion. Any thoughts, send them across ASAP as this story is BREAKING.

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Editor
Gabriel McKeownVerified
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
In an era of economic uncertainty, Britons are choosing to save rather than splurge, with non-pension savings now eclipsing pension contributions for the first time since the pandemic. This latest uptick reflects a landscape of uncertainty and cautious consumer behaviour. However, while increased savings may be positive for household financial resilience, this presents challenges for economic growth and policymakers as they prepare for the upcoming budget. The government faces a delicate balancing act, with the savings behaviour of households remaining a key indicator to watch. There's a need to stimulate economic growth and encourage spending, however, maintaining fiscal responsibility and addressing long-term challenges such as the cost of living crisis will be crucial in unlocking the future spending power currently being saved. Whether this trend represents a new era of financial prudence or a temporary phenomenon remains to be seen.