The drastic drop in consumer confidence in the economy has led to more people saving, according to the Standard Life Savings & Investment Index. 

The overall Index score, which measures consumer sentiment towards various saving and investment categories, dropped to -3 this quarter, its lowest level since research began in July 2005.  

But 58 per cent of those surveyed said they are actively saving or investing for their future, up ten per cent on six months ago, and the highest level since January 2007.  

However, while more of us may be saving, a rising number admit that they are saving less than they were 12 months ago.

The main concern for the majority is the current economic climate and the impact it is having on their cost of living and their disposable income.

Iain McLeod, head of savings and investments at Standard Life, said, ‘Now that times have changed, consumer confidence has plummeted, but there is evidence to suggest that our “live for today, pay tomorrow” culture may be shifting, and we are adopting more prudent savings habits.’