Consumers saving more but spend less

CONSUMERS are saving more but spending less, with many stashing money away as a precautionary measure.

There was an increase in people’s preference to save last month with figures showing 38% of consumers wanted to put away any spare cash they had, up from 29% last year. Consumer’s preference to spend excess cash dropped to 9% from 13%.

The Nationwide/ESRI Savings Index is now at its highest level since it launched in January last year and found that 44% of people are saving for unexpected expenses. Education and holidays are the next most popular reasons for saving at 12% and saving in case income falls is next at 10%.