Brexit not having a significant impact on consumer savings, survey finds

Brexit not having a significant impact on consumer savings, survey finds

88% of people feel that Brexit is not having an impact on their saving decisions, a survey has found.

The Bank of Ireland/ESRI Savings and Investment Index for April shows that Brexit is having more of an impact on saving behaviour in border areas and in Dublin, but is still not a strong driver overall.

3.7% of people from Dublin said they were saving more directly as a result of Brexit compared with 1.1% in April 2018.

In Border Midwest areas, 6% said they were saving more, which an increase from 3.6% a year earlier.

88% of people answered that Brexit had not affected their saving, down from 92% the previous year.

Despite more savers finding that Brexit is more of a consideration for them in 2019, this is still not a strong driver of overall savings behaviour.

Tom McCabe, Bank of Ireland Investment Markets, said: “The most surprising finding in this month’s saving data is that Brexit continues to have very little impact on national saving patterns despite the ongoing uncertainty around what it could mean for the Irish economy.

This suggests that savers are very much still basing their decisions on ‘here and now’ and not on what Brexit related challenges might be around the corner.

"With the Irish economy still growing strongly, this should mean saving sentiment remains positive over the next few months.”

The survey also found that investor sentiment fell in April. This was driven by weaker investment attitudes on whether people invest and how much, and was at the lowest level since December.

The percentage of people who invest regularly dropped to 34% from the all-time high of 37% reached in March.

Meanwhile, saving patterns remained very strong with 50% of people saving regularly in April, up marginally compared to March.

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