Savings Index Down in December

All three main indices declined in December. The Savings Index fell to 104 index points from 116 last month. The Savings Attitude Index experienced a significant decrease, falling from 122 in November to 102 this month. The Savings Environment Index declined by 4 index points this month from 109 last month.

The results this month provide further evidence of the high monthly volatility recorded in recent months (see Charts 1 though 3). In spite of this volatility the three-month moving averages, which smooth out much of the monthly volatility, have been on a noticeable upward trend over the past 12 months.

Three of the four sub-indices experienced declines this month. In the month to December the proportion of consumers able to save money regularly decreased while the proportion who reported not being able to save at all increased to 38 per cent.

As well as this, there was a decrease of 3.2 per cent in the number of people reporting positively about the amount they are able to save. This appears to be more concentrated for those under the age of 50. While the vast majority of respondents reported feeling negative about the amount they are able to save, some 11 per cent of respondents under the age of 50 feel positive this month about the amount they are able to save. This compares to 16.7 per cent of respondents over the age of 50.