The fear of another crisis and inflation will simultaneously trigger savings and consumer spending

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The fear of another crisis and inflation will simultaneously trigger savings and consumer spending

Although it may seem a paradox, Spanish households are increasing their capacity to save and, at the same time, increasing their consumer spending. Savings grew 20% in the second quarter, its highest rate in two years, while consumer spending grew 5.2%. The reason is simple: as families prepare to face the prospect of an economic slowdown that is already looming and could lead to a new crisis, they must also face the rising costs of dealing with the prevent price increases. , which again causes inflation and makes basic household bills more expensive.

This positive balance towards savings is the result of the fact that the reserve-expenditure equation favors the former: households spend less than they earn. According to the Quarterly Non-Financial Accounts of INE, the disposable income of households increased by 12.2% year-on-year, up to 251,190 million euros, while their spending on consumption amounted to 200,740 million euros, 5% more. Comparing the two figures, it was determined that they saved 50,298 million euros in the second quarter, compared to 32,902 million in the same period of 2022, representing a growth, in relative amounts, of 52.9 %.

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

INE also determines the external financing capacity 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 is estimated at 31,024 million compared to 28,797 million in the same quarter. 2022. seasonal and calendar effects, the financing needs of Public Administrations stood at 4.4% of quarterly GDP, 2.2 points lower than the previous quarter. Therefore, 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.

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