Chart of the Week: The rainy day fund

UK household deposits skyrocketed in May by £25.6 billion, as consumer spending contracts.

Deposits increase by £14 billion and £17 billion in March and April, respectively. As the lockdown is eased there was hope that consumers would spend the pent up demand, however deposits have continued to rise as the activity has resumed.

This could be due to a worry that massive job losses are on the horizon, with the furlough scheme due to wind down next month. Households could be holding out for a rainy day.