Savings Index Increases for First Time since March
One in Four People Think Now is a Good Time to Save
Nationwide UK (Ireland)/ESRI Savings Index July 2010
The Nationwide UK (Ireland) Savings Index increased by four points in July, driven by a rise in the number of people who think that now is a good time to save. This is the first time that the Index has increased since it was launched in March of this year.
The July survey shows that one in four respondents think now is a good time to save. At the same time, fewer people are unhappy with the amount that they are saving. This is reflected by a decline in the number of people saving less than they think they should, from 64% in June to 59% in July. In addition, 4% of people now think they are saving more than they should, an increase from 2% since June.
Although the majority of respondents (69%) think regular saving is important, only 40% responded that they save on a regular basis. When asked about the amount they are saving, however, the number of people saving either “a bit less” or “a lot less” than they think they should, was down 5% from 64% in June to 59%.
Less than 10% of people now think that government policy encourages saving while 49% responded that current policy discourages them from saving, an increase from 47% in June. Although the proportion feeling discouraged remains high, it is down from the 55% high recorded in March.
When asked their preference as to how they might allocate any money over and above their everyday needs, 30% of respondents would save their spare cash. The majority (55%) would use the surplus to pay off debts, including their mortgage, while a further 11% would spend the extra money.
Commenting on the Index, Brendan Synnott, Managing Director of Nationwide UK (Ireland) said, “This month we have seen the first increase in the Savings Index since we launched in March. One of the main drivers of the increase is that more people think it is a good time to save. This may relate to the further evidence of uncertainty about economic conditions and reflect the view that people are again becoming reluctant to spend because of this uncertainty. However, this is a one month result and the August data will provide a clearer picture.”
Key Highlights:
- Nationwide UK (Ireland) Savings Index increased by 4 points in July 2010.
- One in four respondents think now is a good time to save.
- Percentage of people saving less than they think they should declined from 64% in June to 59% in July.
- 4% of people now think they are saving more than they should, an increase of 2% since June.
- 59% of respondents think they are saving either “a bit less” or “a lot less” than they should, down 5% from 64% in June.
Summary Data:
|
||||
|---|---|---|---|---|
| Jan-10 | 95 | 83 | 107 | 101 |
| Feb-10 | 101 | 107 | 94 | 100 |
| Mar-10 | 105 | 111 | 99 | 100 |
| Apr-10 | 93 | 86 | 99 | 99 |
| May-10 | 87 | 72 | 103 | 100 |
| Jun-10 | 82 | 71 | 93 | 101 |
| Jul-10 | 86 | 83 | 89 | 96 |
The savings index is constructed from monthly research on the attitudes of Irish consumers towards savings.
The index measures peoples’ responses to questions on their attitudes and behaviour towards saving (The Savings Attitudes Index) and conditions in the wider environment (Savings Environment Index).
The Nationwide UK (Ireland) Savings Index is produced from a minimum sample of 800 consumers over 15 years of age. The ESRI carries out the Savings Index research to ensure the indices represent a national sample.
You can access the full press release here.