Survey finds rise in number willing to spend surplus cash

Irish consumers are becoming increasingly optimistic about their personal finances, a new savings index shows.

The Nationwide UK (Ireland)/ESRI Saving Index found that consumers are altering their spending and saving patterns, with the number willing to spend surplus cash showing a slight increase as consumers aim for a healthier balance of saving versus spending.

About half of consumers said they would use the extra money to pay off debts, such as mortgages, and 35 per cent would rather save it. Only 10 per cent said they would spend surplus cash, but that was 3 per cent higher than February last year.

Managing director of Nationwide UK (Ireland) Brendan Synnott said it was an encouraging sign.

“This could be a positive for the exchequer and reflects the sentiment that Government policies and economic conditions are not pushing people towards precautionary saving as much as they have been in the past.

“While these signs of returning optimism are encouraging, Ireland’s economic performance and the ongoing euro zone crisis will factor heavily on whether these emerging positive trends continue,” Mr Synnott said.