Savings fall in August but figures still up on last year

People saved notably less last month but were still putting more money away than a year ago, according to a figures released yesterday.

In August, the proportion of people saving regularly decreased to 36% from 41% in July.

This, however, is an increase from 30% a year ago.

The Nationwide UK (Ireland) Savings Index, which measures overall sentiment towards saving, decreased to 97 last month, down five points since July.

Nationwide UK (Ireland) managing director, Brendan Synnott, said the figures paint a largely positive picture despite the slight downturn last month.

“While this month’s data shows a reversal of the recent improvement in attitudes toward saving, the underlying trend is still positive. Looking ahead, over 90% of people expect to be able to save the same or more in six months time.

“We are also seeing improvements in economic indicators with increases in household net worth, overall economic growth, increased numbers in employment and a reduction in numbers employed. This means that more people will have disposable income available and so will be in a position to choose between spending and saving.”

The Savings Attitude Index, one of two sub-indices, fell 15 points from 127 to 112 but is still 11 points higher than a year ago.

The other sub-index, that gauges opinion on economic conditions and the impact of government policy on saving, increased from 78 to 82 last month, but still lags 13 points behind the same period last year.

Respondents identified paying down debt (44%) as the most popular use of surplus funds, followed by a preference to save, 38%, spend, 12%, and invest, 6%.