Weaker economy means stronger savings, says F&C
A weaker economy will mean stronger savings, according to Jason Hollands, the head of group communications for leading investment house F&C. Mr Hollands explained that although the economic situation and the environment for investments would most likely be far more challenging in 2008, this meant that because people were reining in their spending, they would be saving more instead.He said: "When people tighten their belts, and the economy goes through a period where people are perhaps a little bit less certain about their job, the future or even a bit less certain about whether they'll get the same Christmas bonus as last year, it does mean that they are becoming more conservative."That has an impact...because people are less willing to go out there and spend on the lavish goods that they have previously, but on the other hand it means that people rebuild their savings."He added: "You tend to find that in a period when the economy is less certain, that is when the savings ratio in the UK gets rebuilt."
Share this..
Related stories
Government red tape has cost UK businesses dear
It has been alleged that red tape has cost UK businesses over £77 billion in the last decade. The accusation is aimed solely at the UK government which has introduced a number of new levels in the regulation of businesses and business markets as well as significant taxes and additional "hoops to jump through". Despite various assurances from the UK authorities that red tape would be cut and lost...
Read MorePeter Mandelson looking to protect Vauxhall jobs
Lord Mandelson is today in Germany to meet executives of Magna, the company which took over a number of General Motors European operations. He is specifically looking for a number of guarantees regarding Vauxhall and the thousands of jobs connected to the operation in the UK. However, while initial signs were good, in that the company had verbally agreed to guarantee jobs in the short term, there...
Read MoreConservative Party at odds with the FSA
David Cameron has stepped into the breach regarding the regulatory issue in UK with a suggestion that overall control of the UK financial sector will be passed to the Bank of England if his party regain power at the next general election. This has put David Cameron seriously at odds with the FSA and Lord Turner in particular appears to have serious issues with this potential move.
T...
How will UK base rates perform in 2010?
As we move towards 2010 and hopefully a new era for the UK economy there is a consensus forecast that UK base rates will remain at around 0.5% for the vast majority of 2010. While this will no doubt cheer mortgage holders and those who have significant debt, we need to spare a thought for savers who have been absolutely hammered over the last two years. It is easy to forget that many people, es...
Read MoreShould David Cameron go to alone?
Despite the fact that David Cameron is well short of an overall majority in the House of Commons there are calls tonight for him to create a minority government. Many believe that if David Cameron wants to grab the keys to number 10 Downing St. ahead of the Queen's speech on 25 May there is no way that the other two political parties would look to force him down and trigger yet another general ele...
Read More