Consumers increasingly happy about saving behaviour

Consumers are feeling increasingly happy about the amount of money they are putting away for a rainy day, according to a new survey.

The latest Nationwide UK (Ireland)/ESRI Savings Index, which measures overall sentiment towards saving, rose to 114 in August, from 112 in July. The rise in sentiment was attributed to a 27 point jump in the Savings Attitude sub-index, one of two sub-indices that make up the main index.

The sub-index, which asks people about their saving behaviour, jumped from 103 to 130 points from July to August. The rise was largely on account of a rebound in the amount saved by consumers, which increased from111.7 in July to 169.6 last month.

That index shows that 51 per cent of those surveyed felt they were saving an appropriate amount.

The Savings Environment index, which asks if people believe that now is a good time to put money aside, decreased from 121 in July to 98 in August, with the three-month moving average also falling from 113 to 108.

The figures suggest an increase in the amount of people who consider it either a bad or very bad time to save, with those aged under 50 years-of-age, particularly concerned on this front.

"From our ongoing research over the last number of months, it is evident that the current low interest rate environment and Government's policy on savings is a cause of dissatisfaction with consumers," said Brendan Synnott, managing director of Nationwide UK (Ireland).

“As the announcement of Budget 2016 approaches in a few weeks’ time it will be interesting to see whether this negative perception of the current savings environment will change in the run up to the Budget or in response to any budget changes,” he added.