Britons more optimistic on future savings

by Gill Montia

Story link: Britons more optimistic on future savings

Britons are feeling more optimistic about their ability to save, according to the Nationwide Future Savings Index.

The Index, which measures consumer confidence in the ability to save, increased five points to 106 in July, scaling to an all-time high.

The gap between those who believed they would be saving more in six months’ time and those who did not reached its narrowest point since the Index began in June 2008, with 18% looking on the bright side compared with 21% expecting to save less.

In addition, the proportion of those who expected to save about the same as they do now in six months’ time remained steady, at 58%, representing the second highest proportion since the Index began last year.

Meanwhile, the Importance of Savings Index leapt 13 points to 98, the biggest monthly increase on record and 3% more people said they believed saving in general was important, compared with June.

Furthermore, the number of respondents who were convinced “now” is a good time to save, given the current economic situation, increased 1% on a month earlier.

Nationwide’s head of savings, Andy Hutchinson, comments: “This is very encouraging and could be the strongest evidence yet that confidence in the savings market is beginning to return, even though this is not yet carrying through to action.

He adds: “The experience of recession appears to be generating a shift in attitude toward savings … it has taken some time for this shift in attitudes to take place, perhaps because of the very large cut in interest rates over the last year.”