Consumers are becoming more confident about saving, a new survey has revealed.

According to the Nationwide UK (Ireland)/ESRI Savings Index, 44 per cent of those surveyed said they are saving as much as they think they should. That figure was 4 per cent higher than in May a year ago. About 5 per cent said they believe they are saving more than they think they should, up 2 per cent compared to April.

The overall index rose by 18 points to 111 in May.

The number of people who are more confident about maintaining their current level of savings over six months has also increased, rising to 78 per cent from 69 per cent a year earlier. Only 10 per cent said they would be saving less, with 12 per cent predicting an increase in the level of their savings.

More people believe hat now is a good time to save, with a slight increase to 32 per cent in May, from 29 per cent in April.

But Nationwide UK (Ireland) managing director Brendan Synnott warned about the impact of the ongoing economic uncertainty.

“Although this month’s results indicate that people are becoming more comfortable with the amount they are saving and are more optimistic about their ability to save in the future, there has also been renewed uncertainty about the economic environment as indicated by recent events in Spain,” he said.

“The overall conclusion is that people are continuing to save, mainly as a precaution for unexpected future events, and there is still no indication of a consumer demand led recovery with only 8 per cent of those surveyed expressing a preference to spend any spare funds available.”