LONDON, June 27 (UPI) -- The savings rate in Britain has declined to the lowest level since 1959, the government's Office for National Statistics said.
The savings ratio dropped to 1.1 percent, a figure last seen when Harold Macmillan was British Prime Minister, The Daily Telegraph reported.
Other measures show the standard of living is falling in Britain, notably disposable income, which dropped 1 percent in the first quarter, the government report said.
"The fall in the household saving ratio from 3 percent to just 1.1 percent emphases the threat to consumer spending as households tighten their belts in response to falling house prices," Jonathan Loynes of Capital Economics told the Telegraph.
Loynes said the Bank of England "is far too sanguine on this."