"With the rate of savings already at a record low, significantly fewer people now expect to be putting more money aside in six months’ time."
This figure is up from 60% in June, and just 41% in July 2016.
Confidence in the country’s financial situation has also deteriorated, with those feeling negative up 2% month-on-month in July, and up by 7% over the last 12 months to now stand at 69%.
Despite continuing worries over the economy, 64% of people feel positive about their personal financial situation in July - unchanged from June, and just 3% below the level seen in July 2016. Meanwhile 79% of people reported feeling positive about their own job security, down just 1% on June and 2% above the level seen in July 2016.
The future outlook seems more uncertain though, with just 20% of people believing they will be saving more in six months’ time, down from 27% in June.
Robin Bulloch, Managing Director of Lloyds Bank, said: “Despite a slight slowdown in the rate of essential spending growth over the summer, concerns around inflation have continued to build, which has an impact on future intentions. With the rate of savings already at a record low, significantly fewer people now expect to be putting more money aside in six months’ time. While the pressure on disposable income makes this understandable, it does mean consumers are less able to absorb any further squeeze on their finances.”
