Less people saving, more worried about global recession
Less people are saving, and more are worried about the risk of a global recession, according to new research by Bank of Ireland.
The Savings and Investment Index shows that the risk of a global recession is the biggest concern for Irish households, ahead of the cost of housing, rent and inflation.
“The increase in concerns about global recession comes at a time when geopolitics has taken centre stage, so it’s the first time we’ve seen this come to such prominence in our survey,” said Kevin Quinn, Chief Investment Strategist, Bank of Ireland.
“With tariffs dominating public discourse up until quite recently and the Israel-Iran conflict now to the fore, it’s little surprise that these concerns are prominent.
“It’s also no surprise to see housing concerns and the cost of living remaining uppermost amongst younger age groups,” he added.
The data shows that attitudes to saving fell between April and June. There was a drop in those saying they are saving, and a drop in those who think they are saving enough.
“After eight interest rate cuts from the European Central Bank, many savers may feel that the rewards on offer are likely to drop,” Mr Quinn said.
“In addition, it is possible Irish households are saving less and spending more, with an eye on what tariffs might do to import prices.
“It’s a phenomenon that has been seen in a number of countries as tariff levels came to the fore of public debate”, Mr Quinn said.
According to the survey, investment habits remain stable, although a cautionary tone remains.
The amount of Irish households who are investing has remained at a similarly elevated level for the third quarter in a row but attitudes here are shifting.
When asked if it was a good time to invest, there was a second drop in a row.
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