UK Economy: Savings High, Credit Rising, Confidence Tentative

Prepared by NatWest Group’s Chief Economist team, the note assesses UK macro conditions at the turn of 2026, balancing resilience against lingering fragility. 

• Households increased savings while consumer credit hit a two-year high, signalling caution alongside selective risk-taking.

• Housing activity and corporate borrowing remained stable, with CFO confidence and tech investment appetite gradually improving.

• Labour markets stayed soft, but wage growth proved sticky; globally, US data weakened while the euro area expanded steadily.

The full analysis explores whether this cautious resilience can evolve into sustained momentum.