Savers express optimism about the future
Nationwide UK (Ireland) / ESRI Savings Index shows fledgling consumer confidence continuing to grow
For the second month in a row the Nationwide UK (Ireland) / ESRI Savings Index has recorded a growing optimism among savers in relation to the economic environment's impact on their personal finances.
According to the data recorded in February 2012, only 16% expect to be saving less in six months time compared with 45% who expected to be saving less in six months in February 2011. 72% expect to maintain their current level of saving while 12% expect to be saving more. In February 2012, 51% believe that they are saving the right amount at present which compares favourably with just 38% for the same period a year ago.
Consumers also appear to be more positive about the impact of the wider economic environment on their ability to save with 33% believing that now is a good time to save compared to 31% twelve months ago. Only 7% of people think that government policy encourages saving which is 3% lower than the level recorded in February 2011.
Commenting on the latest index results, Brendan Synnott, Managing Director of Nationwide UK (Ireland) said, "Although the overall index has remained unchanged versus this time last year, consumers appear to be beginning to adjust their saving and spending patterns and are now expressing more optimism about the future.
The increase in the percentage of people who would spend surplus cash from 7% last year to 10% this year is also an encouraging sign for the economy as consumers feel more comfortable about their financial situations and are striving for a healthier save/spend balance. This could be a positive for the exchequer and reflects the sentiment that government policies and economic conditions are not pushing people towards precautionary saving as much as they have been in the past.
While these signs of returning optimism are encouraging, Ireland's economic performance and the ongoing Eurozone crisis will factor heavily on whether these emerging positive trends continue."
51% of consumers stated that they would use surplus cash to pay of debts including their mortgages while 35% would put it into savings and 10% would spend surplus cash.
In terms of how much people are saving each month, 11% are saving up to €25, 13% are saving between €26 and €50, 31% are saving between €51 and €100 a month, 27% are saving between €101 and €200 and 18% are saving more than €200.
Savings Index data
| Jan-11 | 108 | 119 | 98 | 97 |
| Feb-11 | 97 | 94 | 100 | 101 |
| Mar-11 | 108 | 91 | 124 | 99 |
| Apr-11 | 103 | 89 | 117 | 96 |
| May-11 | 128 | 121 | 136 | 97 |
| Jun-11 | 98 | 90 | 105 | 99 |
| Jul-11 | 111 | 99 | 124 | 97 |
| Aug-11 | 105 | 94 | 117 | 99 |
| Sep-11 | 107 | 93 | 120 | 100 |
| Oct-11 | 115 | 88 | 142 | 98 |
| Nov-11 | 91 | 85 | 98 | 99 |
| Dec-11 | 91 | 87 | 95 | 96 |
| Jan-12 | 114 | 121 | 106 | 97 |
| Feb-12 | 96 | 99 | 93 | 103 |
About the Savings Index
The Savings Index is constructed from monthly research on the attitudes of Irish consumers towards saving.
The Index measures peoples' responses to questions on their attitudes and behaviour towards saving (The Savings Attitude 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.
Note: Prior to January 2011 the Nationwide (UK) Ireland Savings Index was constructed using quarter 1, 2010 as its base period. From January 2011, the Index has been rebased using the year 2010 as the base period.
For media queries or interview opportunities, please contact:
David O’Síocháin, Pembroke Communications
Tel: 01 649 6322 / 087 9362440
E: david@pembrokecomms.ie
Ciara Cashen, Pembroke Communications
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E: ccashen@pembrokecomms.ie
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