Boost in confidence to savings

Nationwide says consumers seem to be more confident about their ability to save in the future than at any time since the Nationwide Savings Index began reporting in June 2008.

In July, the Savings Index increased two points to 82 and the Future Savings Index increased five points to 106 – an all-time high.

The gap between those who believe they will be saving more (18%) and less (21%) in six months’ time than they do now reached its narrowest point since the Index began, and the proportion of those who believe they will save about the same as they do now in six months’ time remains steady at 58%, representing the second highest figure since the Index began.

The Importance of Savings Index increased 13 points to 98 – the greatest monthly increase since the Index began.

The Savings Environment Index increased six points to 71. More people (20%, an increase of 2% from June) believe now is a good time to save given the current economic situation.

Fewer people (50%, a decrease of 4% from June) believe that now is a bad time to save given the current economic situation.

Nearly half (46%, a decrease of 7%) of consumers believe Government policy discourages people from saving. The last time this figure was lower was in November 2008, when 41% of consumers believed Government policy discouraged people from saving.