Market jitters curb investors

Three years of falling stock markets have put Britons off investing, and has led them to keep a higher proportion of their money in deposit accounts.

A report by market analyst Datamonitor revealed the level of UK households' savings and investments rose by an average of just three per cent a year between 1998 and 2003. It said "miserable market conditions" had played a major role in the slowdown of savings and investment growth, and had also led to a 25 per cent fall in the amount of money people held in shares.

It added that reports by City watchdog the Financial Services Authority on the mis-selling of investment products had also weakened consumers' appetite for risk, and led to a 20 per cent increase in the level of money people kept in savings accounts.