Emma-Lou Montgomery, Associate Director at Fidelity International discusses ONS’ final figures for UK GDP that shows households’ saving ratio increased to 19.9% in Quarter 1 2021 compared with 16.1% in Quarter 4 2020.
Emma-Lou Montgomery, Associate Director for Personal Investing at Fidelity International comments:
“These figures highlight exactly how much of an impact lockdown restrictions have had upon our spending habits over the last year, with many of our usual outgoings out of reach. While lockdown was different for everyone, for large sections of society everyday savings have amassed on a vast scale. This has created an opportunity for many households to strengthen their long-term financial position by putting those savings to good use, with our own research suggesting UK adults saved an average of £1,744 each in net day-to-day outgoings since lockdown began in March 2020.
“However, since the first quarter of 2021 as restrictions have slowly been easing, our spending has increased – the opportunity to browse in physical shops or enjoy a meal out with friends or family has been met with open arms. There is still a balance to be had though, between spending and saving, and many households will be looking at how they can maintain the buffer they’ve built up. Ahead of social restrictions being fully eased taking the time to look at our spending habits and assessing what is and isn’t necessary is a good first step to staying on track.”