Sunday, July 3

Household saving rate drops to 3.7% of income after increasing consumption

The spanish homes placed in the third quarter his savings rate at 3.7% of your disposable income, rate 1.2 points lower to that registered in the same quarter of 2020, after investment soared, increased consumption and reduced savings, as reported on Thursday by the National Institute of Statistics (INE).

Eliminating the seasonal and calendar effects, the household savings rate stood at 10.9%, which is 1.7 points more than in the previous quarter, but three points less than in the same quarter of 2020.

Spanish families saved between July and September a total of 6,547 million euros, 22.3% less than in the same period of 2020, and increased their consumption spending by 3.3%, to 168,148 million euros, after increasing his disposable income is 1.2%, up to 175,101 million euros.

The savings generated by households were insufficient to finance the investment they made in the third quarter (17,956 million euros, 42% more), so they showed a financing need of 11,413 million euros, compared to the 4,776 million of the same quarter of 2020.

The gross added value generated by the ‘households’ sector varies by 2.3% in the third quarter compared to the same period of 2020. The operating surplus and gross mixed income of the sector presents a variation of -0.3%. The INE experts consider that “if the increase in remuneration to be received by employees (6.3%) and the evolution of the net balance of property income to be received (interest, dividends, etc.) is taken into account, a variation of 4.7% is obtained in the gross primary income balance, considering also the joint behavior of the secondary income distribution flows (taxes on income and wealth, contributions and social benefits and other current transfers), in the third quarter of 2021 the gross disposable income of households varies by 1.2%, up to 175,101 million euros “.

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The Spanish economy registers a financing capacity compared to the rest of the world of 7,006 million euros in the third quarter of 2021, which represents 2.4% of the GDP of that period. In the same quarter of 2020, the financing capacity was 3,020 million (1.1% of GDP). This increase is explained by a higher balance of foreign exchanges of goods and services (7,560 million euros, compared to 4,843 million in the same period of 2020) which, together with the evolution of income and current transfers, provides a balance of operations currents with the exterior superior in 2,222 million to the same quarter of the previous year. Likewise, the balance of capital transfers is 2,660 million, compared to 896 million in the same quarter of the previous year.

The Public Administrations, for their part, showed a financing capacity between July and September of 811 million euros, in contrast to the deficit of 4,415 million euros in the same quarter of 2020. If seasonal and calendar effects are eliminated, the Public Administrations showed a financing need of 7.3% of quarterly GDP, the same as in the previous quarter.

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