Saving levels in decline as reopening releases pent-up spending demand

By contrast, confidence in investing is at its highest level since the Bank of Ireland savings and investment survey began

Irish consumers’ appetite for saving money has dropped as the economy has gradually reopened, with pent-up spending demand beginning to get released.

Bank of Ireland’s latest savings and investment index shows that 47% of people see it as being a good time to save; down from 55% at the mid-point of last year.

More confidence in investing

By contrast, attitudes to investing have begun to move upwards. In June 2021, 36% of people surveyed saw it as a good time to invest, the highest since the survey started.

“Government pandemic supports have bolstered consumer financial confidence, while higher savings rate has provided an added layer of financial reassurance over the past year,” said Bank of Ireland’s chief investment strategist Kevin Quinn. 

But this quarter’s survey results suggest a shift in attitudes on saving, which is understandable as things reopen and there are more options to spend. 

Meanwhile, Irish economic confidence remains high, accountancy body ACCA has said in a separate survey.

Vaccine rollout has boosted optimism 

It has attributed the strong level of optimism to the rollout of the Covid vaccine programme.

“The current challenges that there are to the reopening are significant and they could potentially have an adverse impact on the economic outlook especially with the PUP and the wage subsidy scheme due to end shortly,” ACCA Ireland head Caitriona Allis warned.