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British households started in the first quarter with the fastest interest rate since 2023, while the proportion that people saved decreased for the first time in two years and possibly one of the most important economic goals of the Labor course from Labor course.
The office for national statistics confirmed on Monday that the Great Britain economy Grew in the first quarter with a rapid rate of 0.7 percent, the fastest since the same period in 2024.
However, the detailed figures showed that rising wages were compensated for by an increase in taxes and an inflation jump.
Real HouseHold Available Income Per Head-The Inflation Income, which was available for a household after taxes and subsidies available in the first quarter compared to 1.8 percent in the last three months, which has marked the fastest decline since the first quarter of 2023.
Last year Prime Minister Sir Keir Starrer said The government would appeal to the available income of the budget as a “milestone” for the assessment of the success of its economic policy.
Matt Swannell, head of the Ey Item Club, said that the slowdown and inflation of profit growth with increasing extent of real income “is slowing down” over the rest of this year “.
However, he found that households that save a little less, “gives space for the consumption of this slowdown”.
The proportion of the available income that saves households decreased in the first three months to 10.9 percent, which has been due to 12 percent in the past three -month period, which has marked the first decline for two years.
Liz Mckeown, director of business statistics, said: “The savings rate fell for the first time in two years in this quarter, since rising costs for articles such as fuel, rent and restaurant meals have contributed to higher expenses.”
She pointed out that the ratio remains “relatively strong” because it is compared with an average of 5.5 percent in the three years to 2019.
Sandra Horsfield, economist at Investec, said: “There seem to be the extent for further declines in the future, since lower interest rates over time encourage households to save less. This can serve as support for economic activity.”
According to Ruth Gregory, the deputy chief economist at the Capital Economics, the composition of growth in Great Britain looks “somewhat healthier”, since the expansion depends less on business investments and net trade, and more on budget consumption.
Nevertheless, growth in the first three months by business activities in front of the US tariffs and a one-time leap into the planes was made. “These growth sources will not be maintained,” said Gregory.
Separate monthly figures published earlier in June showed that the economy was completed by 0.3 percent between March and April. Economists who were interviewed by Reuters predicted economic growth in the second quarter to only 0.1 percent.
Weakening of the growth of real income, tightened fiscal policy and the volatility of the high global commercial market weighs the economic outlook in Great Britain, said Swannell.
“After the strong start by 2025, Great Britain is looking for weak growth for another year, with the head wind further increasing,” he said.
Separate data published by Bank of England on Monday showed that in May the net performance of consumer loans by people to 859 million GBP decreased from 1.9 billion GBP in the first month, the lowest level since April 2024.
For some economists, this indicates that the decline in retail sales in May in May was not compensated for by greater expenses for non-operations, which contributed to signs of a blunted economic dynamic in the second quarter.
However, the data of the Bank of England also showed that the mortgage approval for home purchases increased by 2,400 to 63,000 in May, the first increase since December 2024.
