Spanish households placed their savings rate in the first quarter at -0.8% of their disposable income, thus registering their first negative rate since the first quarter of 2019. In the previous quarter, the household savings rate was 8.3%, as reported this Thursday by the National Institute of Statistics (INE).
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The drop in the household savings rate to -0.8% is due to the fact that they spent more than they received. Thus, its disposable income increased by 3.8% year-on-year, to 181,147 million euros, while its consumer spending totaled 181,618 million euros, 14% more.
In addition, they increased their investment by 33.4%, to 19,379 million euros, so that it reached 7.6% of their disposable income, the highest percentage since the end of 2012.
As a consequence of all this, households cut their savings in the first quarter by 1,427 million euros, in contrast to the savings of 14,516 million in the same period of 2021, which in relative terms represents a decline of 109.8%.
If seasonal and calendar effects are eliminated, the household savings rate reached 7.5% of their disposable income in the first quarter, a rate 2.1 points lower than that of the previous quarter and the lowest since the fourth quarter of 2019, just before the pandemic was declared.
Households were unable to finance the investment they made in the first quarter of the year with their savings, so they showed a financing need of 21,535 million euros, compared to -574 million in the first quarter of 2021.