Saving is killing jobs, says retail body

Fearful households may be killing job creation with caution by scrimping to save rather than spend in the cash-starved economy, according to a director of the body representing the retail sector.

A survey shows 75% of people are saving, putting by an average of almost €250 a month and feeding into a mountain of personal bank deposits which stands at €86.5bn.

With interest rates on savings accounts low and taxes on interest earned high, a fear for the future rather than gains on lump sums is believed to be the main factor behind the savings.