Families in the United Kingdom are strengthening savings with the prevailing of economic uncertainty

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British families have strengthened their savings in the second quarter, according to the new data indicating caution of the consumer, amid an unconfirmed economic view.

The National Statistics Office said on Tuesday that the percentage of available income provided by families increased by 0.2 percent to 10.7 percent in the three months to June. The percentage of household savings is much higher than an average of 5.6 percent in the three years that preceded the epidemic.

ONS said that the high income available was largely driven by increased wages and discounts in income and wealth taxes.

Statistical Agency also confirmed that the economy grew by 0.3 percent in the second quarter, which represents a slowdown in the growth of 0.7 percent in the previous three months. Production in industries facing consumer, such as bars and restaurants, decreased by 0.1 percent in this quarter, even with all services increased by 0.4 percent.

“Families are still reluctant to decline in their savings,” said Martin Beck, the chief economist in the WPI strategy.

“The recovery of spending on consumers using accumulated savings can help grow if confidence improved, but concerns relate to the November budget and the risk of the fundamental tax height can undermine feelings … fluctuating a potential virtue cycle to a vicious one.”

The growth in the last quarter was often driven by government consumption, while family consumption increased by 0.1 percent, despite a faster increase in the family available.

At the employment conference on Monday, Chancellor Rachel Reeves said that the UK’s economy was strong, but he warned that difficult options were to follow up in
Its budget on November 26, paves the way for new tax height.

Prime Minister Sir Kerr Starmer is expected to use his main speech at the work conference on Tuesday to warn his party against his willingness to “He” decisionsIt is not free of cost or easy“.

Matt Swaniel, the chief economic advisor at EY ITEM, said that the detailed GDP data “indicated more twice as much as it suggested to the stubborn reading, as the consumer continues to be cautious in curbing the special demand.”

He added that the UK appears to be “slow growth” during the coming quarters, where real income is pressed and more tax increase in the autumn budget appears “almost inevitable”, which adds to the financial tightening of the previous budget.