ESRI/Nationwide (UK) Savings index increases in January

All three main indices increased in January. The Savings Index rose to 122 index points from 104 last month. The Savings Attitude Index experienced a relatively large increase, gaining 18 index points to reach 120 in January. The Savings Environment Index increased to 123 index points this month from 105 last month.

Looking at recent monthly results reveals significant volatility within the indices (see Charts 1 though 3). The three-month moving averages, which smooth out much of the monthly volatility, provide a clearer picture of the upward trend observed over the last year.

As well as this, all four sub-indices experienced increases this month. In the month to January the proportion of consumers able to save money regularly increased to 45 per cent while the proportion who reported not being able to save at all decreased to 31 per cent.

The sub indices relating to the amount that people are able to save increased in January to 140.7 index points following a large decline in December. This result is primarily driven by those under the age of 50. While the vast majority of respondents reported feeling negative about the amount they are able to save, this month there was an increase in the proportion of people reporting positively, moving up to 15.3 per cent from 11 per cent last month. This was accompanied by a decline in the proportion of people reporting negatively. The responses from the over 50 category was relatively unchanged from last month. There was also a notable increase in the proportion of people thinking current government policy encourages saving. This resulted in an increase of 23.3 points in this sub index.