By Marcus Leach
Less than a week after consumer confidence dropped again high street banks have said consumers are adopting a 'wait and see' attitude to finances.
According to the British Bankers' Association (BBA) people are saving more, paying off more debt and borrowing less through loans due to the uncertainty of the economy.
The BBA said home loans were down in April, a sign of a safety first approach from consumers as repayments of loans was in the positive against borrowing by £181 million.
"Individuals and businesses continue to save more, pay off debt and borrow less as uncertainty about the economy has entrenched a 'wait and see' attitude," said BBA statistics director David Dooks.
"However, banks are still able to meet the need for home loans even though demand remains weak. Businesses - SMEs in particular - are using cashflow and deposits to fund expenditure rather than taking on more borrowing.”