Consumer sentiment towards savings declines for second consecutive month
Nationwide UK (Ireland)/ESRI Savings Index May 2010
The Nationwide UK (Ireland) Savings Index for May 2010 shows a 6 point decline from April's index figures as consumer sentiment towards savings declines for the second consecutive month following a period of positive sentiment.
Savings remain important but people are expressing less extreme positive views on the need to save and are generally less pessimistic about economic conditions and government policy towards savings.
Saving as a general concept remains important to 64% of people compared with 69% in April and at an individual level, saving is important to 59% of people although this has dropped from 64% in April.
Commenting on the May index, Nationwide UK (Ireland) Managing Director Brendan Synnott said, 'May's Savings Index figures are being driven by an overall softening in the very positive attitudes towards saving that were being expressed earlier in the year. People are now showing signs of being less concerned that the economic situation will deteriorate further and are therefore less concerned about the necessity to save.
As indicated when we launched the Savings Index last month, our start point was extremely high and it is normal for the index to move downwards from this level.
A decline was also recorded in consumer sentiment towards spending spare cash. In April 13% stated that they would spend any spare cash while in May less than 8% said they would do the same.
Key Findings
- The concept of saving remains important to most people at a general level at 64% (69% in April)
- At an individual level, savings are important to 59% of people (64% in April)
- There has been a significant increase in the percentage of people in the middle ground who classify savings as somewhat important (as opposed to very important or not important). In May, 36% of people held this opinion versus 28% in April.
- The percentage of people not saving at all increased to 31% (26% in April)
- The percentage of people saving regularly decreased to 38% (41% in April)
- The percentage of people saving 'about what they think they should' increased to 33% (28% in April)
- Less extreme views are being expressed on the economic conditions for saving. The percentage of people who think its 'neither a good or bad time to save' is now 37% (28% in April)
- Fewer people are saying that government policy discourages savings. In May this stood at 44% (52% in April). Note this survey was conducted during the time period when the National Solidarity Bond was launched
Summary Data:
| Jan-10 | 95 | 101 | 107 |
| Feb-10 | 101 | 100 | 94 |
| Mar-10 | 105 | 100 | 99 |
| Apr-10 | 93 | 99 | 99 |
| May-10 | 87 | 100 | 103 |
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.