Across the UK, households are setting more money aside, according to the most recent data by the Office for National Statistics (ONS).
For people seeking savings advice in Cheshire, these are uncertain times, and the evidence suggests people are becoming more cautious. Consumers are influenced by economic news events, with particular concerns over inflation and the cost of living.
The latest economic data from the ONS shows that the proportion of household disposable income saved was up 0.2% to 10.7% in the quarter ending June 2025. This is a lot higher than the average 5.6% recorded before the global COVID pandemic. The increase in disposable income was largely driven by a £4.4 billion increase in private sector wages. This represented the first quarterly increase since the beginning of 2025.
The overall economy grew by 0.3% in the second quarter, but GDP was down on the 0.7% figure for Q1. Bars and restaurants reported a 0.1% drop in output over the same period. Economists at public affairs consultancies like WPI Strategy have said this is indicative of households saving more and spending less on going out.
The question now is what happens next. Will accumulated savings propel consumer spending or will it be dampened by tax rises? Some major retailers like Next and ASOS have expressed concerns of this nature. Recent growth appears to have been driven in the main by government spending rather than household outlay. Time will tell how resilient consumer spending is.
