Positive shift in saving habits

CONSUMERS are more positive in their attitude towards saving and are using less of their stash to pay off debts.

The latest Nationwide UK (Ireland) /ESRI savings index for October increased by 10 points after recording its lowest value ever in September.

The positive shift in the index is driven by an improvement in consumer attitudes towards saving and perceptions of the wider savings environment.

The main factor behind the recovery of the Index in October was an increase in the percentage of people who think it is a good time to save from 23% to 25%.

There was also a decrease in the percentage of people who believe they are saving less than they think they should from 64% to 60%.

The percentage of people preferring to use any spare cash to pay debts as opposed to save or spend fell from 60% in September to 57% in October.

Managing director of Nationwide UK (Ireland), Brendan Synnott said: “The improvement in the Index in October suggests that consumers are in a process of absorbing and reacting to events in the economy as they emerge.

“In October, overall opinions on savings have come back to previously recorded norms, however, the events unfolding this month will no doubt be reflected in next month’s Index.”

The percentage of people who would save any spare cash increased from 25% to 29% while the percentage of people who would use spare cash to pay off debts dropped from 60% to 57%.

In addition, there was a fall in the percentage of people who believe it is a bad time to save from 47% to 45%.

The savings index measures peoples responses to questions on their attitudes and behaviour towards saving.