Report shows sentiment among Irish savers at most positive in five years

Report shows sentiment among Irish savers at most positive in five years

A study which measures overall sentiment towards saving in Ireland has hit its highest level since it began in 2010.

The Nationwide UK (Ireland)/ESRI Savings Index increased to 129 in September from 114 in August.

The main index and the two sub-indices all increased this month.

The Savings Environment sub-index, which asks respondents if they feel now is a good time to save, rose to 119 in September from 98 in August.

The Savings Attitude sub-index, which asks about saving behaviour, rose to 139 in September from 130 the prior month.

The overall increase in positive sentiment is largely due to the rise in those who feel now is a good time to save, which stood at 129 points in September compared to 114 in August.

Those in the under-50 age bracket who felt now was a very bad time to save fell to 6% in September from 12% in August.

Overall, the number of people who feel now is a very bad time to save fell to 7.7% in September from almost 12% in August.

Some 49.2% of those surveyed in September claimed to be regular savers, the highest level since January 2010, when the survey began.

The proportion of people who said they would use surplus money to pay off debts, including their mortgage, fell to 40% from 44% on a monthly basis.

The level of people choosing to save surplus money in September was 33.5%, little changed from August’s figure of 34%.

Commenting on the Index, Brendan Synnott, Managing Director of Nationwide UK (Ireland) said:

"It is clear that savers in September felt much more positive regarding the current saving environment," he said.

"This is no doubt part of a growing confidence as the economy continues its strong growth. Having been through a prolonged recession it is clear the Irish consumer is aware of the importance of saving.

Significantly, those in the under 50 age group, often with ongoing costs such as childcare and mortgages, were more positive in terms of the current savings environment. It is also interesting to note that, according to the latest Central Bank of Ireland figures, household deposits have increased by two billion euro in the twelve months to the end of July 2015.

"Therefore it appears that the improved sentiment we are seeing in the Savings Index may be translating into actual saving."

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