Irish savers turn more positive in November

Irish consumers were more positive about saving in November, with the number of people who feel they are saving the right amount on the rise, according to a new survey.

The overall Nationwide UK (Ireland)/ESRI Savings Index rose to 116, from 108 in October. The Savings Attitude sub-index, which measures savings behaviour, was also up in November, rising to 122 points from 104 in October. The number of people who felt they were saving less than they should fell from 50.2 to 46.1.

"The ongoing positive economic data, showing that Ireland's growth continues to outstrip the Eurozone level, allows people to feel more confident," said Brendan Synnott, managing director of Nationwide UK (Ireland). "This perhaps helps explain the more upbeat sentiment in consumers' attitude toward saving and their ability to do so."

But the Savings Environment sub index sounded a note of caution. Low interest rates were weighing on sentiment, with fewer savers believing now was a good time to build up their accounts. The sub-index fell to 109 in November, from 113 in October, with the attitude predominantly seen among younger people.

“This isn’t surprising as we edge towards Christmas and the ongoing low interest rate environment,’’ Mr Synnott said.

Of those people who said they found themselves with extra money in November, a third chose to save the surplus. That was down from 35 per cent in October, as more people said they would use the extra cash topay off debts including their mortgages, with 13 per cent planning to spend it. Only 11 per cent said they would invest it.