Fear of another crisis and inflation simultaneously trigger household savings and consumer spending

2023-09-30 11:43:18

Although it may seem like a paradox, Spanish households have boosted their savings capacity and, at the same time, have increased their consumer spending. Savings grew by 20% in the second quarter, its highest value in two years, while consumer spending grew by 5.2%. The reason is simple: while families are once again preparing a cushion in the face of the prospects of an economic slowdown that is already looming and that could lead to a new crisis, they must also face increasing spending to face the unstoppable rise in prices. , which has once again triggered inflation and made basic household bills more expensive.

This positive balance towards savings is a consequence of the fact that the reserve-expenditure equation has opted for the former: households spent less than they earned. According to the Quarterly Non-Financial Accounts of the INE, the disposable income of households increased by 12.2% year-on-year, up to 251,190 million euros, while their consumption spending totaled 200,740 million euros, 5% more. When comparing both figures, it is determined that they saved 50,298 million euros in the second quarter, compared to 32,902 million in the same period of 2022, which represents a growth, in relative values, of 52.9%.

If seasonal and calendar effects are eliminated, the household savings rate reached 11.7% of their disposable income in the second quarter, a rate two tenths lower than that of the previous quarter. but 4.4 points above that of the second quarter of 2022. Without correcting, this savings rate stands at 20% compared to 14.7% in the same quarter of the previous year. Household investment reached 15,295 million in the second quarter, 2.7% more, compared to 14,893 million in the same period of the previous year, so they showed a financing capacity of 34,510 million euros, double that of in the same quarter of 2022.

The INE also determined the financing capacity outside of households. Non-financial companies registered a financing capacity of 1,299 million, compared to 6,556 million in the second quarter of 2022, while in the Public Administration sector, the financing need was estimated at 31,024 million compared to 28,797 million in the same quarter. 2022. Eliminating seasonal and calendar effects, the financing need of the Public Administrations stood at 4.4% of the quarterly GDP, 2.2 points lower than that of the previous quarter. Thus, the quarter closed in general terms with a gross national income of 361,528 million and a gross national disposable income of 357,797 million.