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Consumer issues
News Release from: Standard Life Bank | Subject: Consumer confidence
Edited by the Insidemoneytalk Editorial
Team on 03 March 2008
Standard Life Savings and Investment
Index reflects further drop in consumer
confidence
The Standard Life Savings andamp; Investment Index hit an all time low in January 2008.
The survey, now in its 11th wave, has been measuring consumer sentiment towards various savings and investment categories on a quarterly basis since July 2005 The overall index score fell from 11 in October 2007 to just 3 in January 2008
This article was originally published on Insidemoneytalk on 3 Apr 2007 at 8.00am (UK)
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The highest point was 23 back in October 2006.
The index score is derived from the responses people gave when asked if it was a good time to invest in a range of investment categories.
The main factors affecting the drop in the Index this quarter were the numbers stating that it was a bad time to invest in your own home/renovation (29%), buy to let property (45%), or in stocks and shares (44%).
ISAs continue to be the most popular method of investing, with 86% of people answering 'OK', 'good', or 'very good' when asked if it is a good time to invest in one.
But even ISAs have fallen in popularity since their high point in April 2007 when 90% of people responded favourably.
On the other hand, the various types of pension have all seen an increase this time, as have savings bonds and notice accounts.
Commenting on the findings, Allison Crawford, Director of Lending, Savings and Investments at Standard Life said: "This latest research sits against the backdrop of recent turmoil in the market and clearly reflects the uncertainty in people's minds around their savings for the future.
But it's important that people don't lose their nerve because of the current market volatility.
It's important to continue to take a long term view and not over-react.
Thankfully, the majority of people still feel positive about one or more of the range of savings and investment vehicles available to them." The benefit of financial advice is a recurring theme in each wave of the research.
Those with a financial adviser are more likely to be saving for the future (75% v 47%); are more likely to be satisfied with their savings for retirement (44% v 27%); and are more likely to be happy (81% v 75%)!.
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