Savings Index for February 2016

There were somewhat mixed results in February for the 3 main indices. The Savings Index remained unchanged from last month at 122. The Savings Attitude Index experienced a decrease, falling 8 index points to reach 112 in February. The Savings Environment Index increased to 131 index points this month from 123 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.

In addition to this, three of the four sub-indices experienced decreases this month. In the month to February the proportion of consumers able to save money regularly decreased to 41 per cent while the proportion who reported not being able to save at all remained relatively unchanged at 30.9 per cent

The sub indices relating to the amount that people are able to save decreased in February to 129.1 index points. The result seems to be driven by both over- and under-50’s with both experiencing relatively large declines. 61.1 per cent of respondents reported feeling negative about the amount they are able to save. This was accompanied by a decline in the number of positive responses falling from 16.0 to 14.4 per cent. There was also a notable increase in the proportion of people thinking current government policy encourages saving. This resulted in an increase of 21.5 points in this sub index.