Nationwide UK (Ireland) have today released their latest monthly savings Index. The index measured consumer sentiment towards saving in January.
The main index rose to 122 points in January, from 104 points in December - its highest level since September, as the pressures of Christmas spending receded.
The overall increase in savings sentiment was driven by a rise in those who felt better about their ability to save and those who believe that government policy is creating a more positive savings environment.
The amount of people who feel now is a good time to save stood at 34% in January, while the number of people who feel negative about the savings environment was 29.8%.
In terms of consumers’ intentions for any surplus money, 47.9% said they would use extra cash to pay off debts including their mortgage. That compares to 46.6% in December.
A further 12.9% said they would spend the surplus money, up from 8.1% the prior month, while 9.2% said they would invest it.
This rise in sentiment was particularly strong in the under-50 age group. When asked whether they thought government policy encouraged spending, 13.5% of respondents in that age group said they did, compared to 8.5 percent the previous month.
Managing Director of Nationwide UK (Ireland), Brendan Synnott said, "It seems as though savers are feeling more positive as some of the measures in last October’s budget take effect in 2016.
"For instance, the cut in the rate of the USC has now gone live and will have contributed to a feeling of a more positive environment for savings.
"Of course it’s also clear that after some years of low interest rates, the majority of people still feel the savings environment isn’t as positive as it could be. What we are also seeing is the pressure of Christmas spending has passed, causing an uplift in savers’ ability to put aside extra cash."
Source: www.businessworld.ie
