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Hopes for recovery take a blow as Irish consumers increase savings

The Nationwide/ESRI savings index shows a significant increase in the amount of cash that worried consumers are keeping aside.

IRELAND’S HOPES FOR a recovery in its domestic economy have taken another blow, as a new report finds that uneasy consumers are keeping more and more of their money in savings and aren’t willing to spend.

The monthly Nationwide UK (Ireland)/ESRI Savings Index showed an increase for July, as shoppers opted to keep their money stashed away for fear of a further deterioration in the economic environment.

The ESRI said the increase had been driven by a major jump in the Savings Environment sub-index, as more consumers feel encouraged to keep money aside.

The increase in savings comes despite a 3 per cent drop in the numbers who believe now is a good time to save. 37 per cent of the survey’s respondents said they felt now was a bad time to save.

A third of respondents said they were saving between €51 and €100 per month, up by 5 per cent from the previous survey in June, while the numbers saving €26 to €50 per month was up from 17 per cent to 23 per cent.

Brendan Synnott of Nationwide UK (Ireland) said savings concerns were not age-specific, “as it is being expressed by those over and under fifty years of age. Irish consumers are anticipating more uncertainty to come in the future.

“While Ireland is no longer at the centre of the continuing economic crisis, the bigger European and global dimensions that are now the focus of attention suggest that we are moving even further away from the restoration of consumer confidence and therefore willingness to spend.”

The savings index, which had stood at 98 for June, had been at 128 in May – leading some to hope that consumers were becoming more willing to spend their money and get the economy moving again.

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8 Comments
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    Mute Ciaran O'Kane
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    Aug 4th 2011, 5:08 PM

    Heh… here’s a little suggestion… STOP spending money you don’t have…

    27
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    Mute Toureag
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    Aug 4th 2011, 6:52 PM

    Bring back punt….all is forgiven!

    19
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    Mute Gis Bayertz
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    Aug 4th 2011, 10:22 PM

    Agree

    6
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    Mute Wujashtop
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    Aug 4th 2011, 7:48 PM

    The Irish Central Bank is busy printing the punt… Fact.

    16
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    Mute Guinness Follower
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    Aug 4th 2011, 8:11 PM

    Yeah right.

    9
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    Mute Wujashtop
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    Aug 4th 2011, 9:20 PM

    Its true my friend. It makes sense doesn’t it?

    What to do…? Gold bubble seems to be growing but if the Euro hits the fan there’ll be one hell of a scramble for safe havens.

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    Mute Gis Bayertz
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    Aug 4th 2011, 10:24 PM

    Would be nice, but I don’t think so

    7
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    Mute Sheila Murphy
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    Aug 4th 2011, 8:53 PM

    what we have to be careful of here is a 2-tiered Euro – we’d be on the lower tier if they do that and screwed.

    Bring back Lady Lavery!!!!

    13
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    Mute Kieron Jnr Ward
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    Aug 4th 2011, 6:10 PM

    Is it Jose? no way! dog in the street anticipated this months ago…

    13
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    Mute Gis Bayertz
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    Aug 4th 2011, 10:22 PM

    No way Jose! :-)))

    9
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    Mute Ann Illing
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    Aug 4th 2011, 8:08 PM

    Wow a letter is writen about the worst financial crisis europe has known. That should sort it out. Not.

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    Mute Gis Bayertz
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    Aug 4th 2011, 10:25 PM

    Barroso is an idiot and we all knew that, or not?

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    Mute Mata Mata
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    Aug 4th 2011, 7:12 PM

    Jose keep your comments to yourself !

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    Mute gareth byrne
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    Aug 4th 2011, 9:57 PM

    So it takes Spain and Italy to go into melt down before the big wigs cop on.Well even the dogs on the street knew this was going to happen.Ireland,greece caught the cold.Now the rest of europe is getting the flu.Any help now is two little two late.Germany wont allow the euro to fail because that would be bad for there exports.But what price are they willing to pay to keep the euro.Time will tell.

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    Mute Wujashtop
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    Aug 4th 2011, 10:19 PM

    Germany doesn’t have enough cash to prop up the entire eurozone.

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    Mute gareth byrne
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    Aug 4th 2011, 11:02 PM

    Then a two teir europe is on the cards.Bad news for p.i.g.s.

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    Mute fitszpatrick
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    Aug 4th 2011, 11:18 PM

    Pigs Horrible expression favoured by the uk right wing press , it appeals to their racist cores. Please don’t use it here

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    Mute Torrentum Cedron
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    Aug 4th 2011, 11:22 PM

    I must say, my enthusiasm for the entire European project and the single currency is waning. Remember when membership of the EU was about democracy and exciting shared futures? Now it’s about Germany and France barking at everyone all the time. I really and truly can’t see the euro recovering from this. I honestly think this is the beginning of the end of the single currency. Is it true that a return to the punt will mean an immediate â

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    Mute Martina Ni Githan
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    Aug 5th 2011, 3:11 AM

    The debit crisis is as catchy as crabs

    3
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    Mute Lisa Saputo
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    Aug 5th 2011, 8:25 AM

    When are they going to cop on and admit that adding to the Eurozone’s debt is only going to make things worse.

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    Mute gareth byrne
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    Aug 5th 2011, 12:37 AM

    The term P.I.G.S. is and has been, used all over the world when euro debt has been talked about.Its not a uk term.

    2
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