Nationwide UK (Ireland) launches its Savings Index in association with the ESRI
Consumer Sentiment towards Saving Declines in April 2010
Nationwide UK (Ireland), a branch of the world’s largest building society, has partnered with the Economic and Social Research Institute (ESRI) to produce a monthly Savings Index for the Republic of Ireland.
The index is based on consumer research and consists of a number of different indices including an Overall Savings Index, an Importance of Saving Index, and a Savings Environment Index. The Index uses January – March of 2010 as a base. Updated data will be published monthly on www.nationwideuk.ie.
The first Savings Index shows a 7 point decline overall. This is driven by a decrease in the number of people saving regularly from 44% in March to 41% in April and an increase in the percentage of people not saving at all from 23% to 26% in the same period.
Irish consumers have also expressed negative sentiment about the amount they are able to save at present due to the prevailing economic conditions. This is illustrated by the fact that the number of people who think that the current economic conditions represent a good time to save decreased from 34% in March to 31% in April.
Commenting on the first report Brendan Synnott, Managing Director of Nationwide UK (Ireland) said "It is important to put the index and this month's findings in context. The Saving Index is starting from a very high base. In the past 18 months there has been an upsurge in positive sentiment towards savings, mainly due to uncertainty about other investment options. In the months ahead we expect the index to respond, for example, to changes in the economic outlook and interest rates. This month's findings show that most people think it is important to save regularly but this is not translating directly to behaviour for some as there has been a decline in the number of people who save regularly".
Commenting on Nationwide UK (Ireland)’s reasons for launching a Saving Index, Synnott, said, “As a relatively new direct savings provider to the Irish Market, we believe that it’s important to know what consumers think about savings, how important saving is today and whether government policy encourages saving. These trends will help us direct further research and contribute to business planning. Decisions made by individuals about their saving intentions over the coming years will also have important implications for economic recovery and we are happy to work with the Economic and Social Research Institute to produce this index.
The value of the Savings Index will increase over time and we hope that it will become an important reference document on personal savings in Ireland.”
You can access the full press release here.