The household saving rate revisited: recent dynamics and underlying drivers

Maria Dimou, Marco Flaccadoro and Johannes Gareis

Economic Bulletin Boxes, 2026, vol. 8

Abstract: This box provides updated evidence on developments in the household saving rate and its recent drivers. It shows that income and consumption have grown at similar rates since mid-2024, stabilising the saving rate at a level well above its pre-pandemic average. Model-based evidence suggests that lower real interest rates and rising real net wealth have increased incentives to consume, but that these effects have not fully offset the fact that savings continue to be supported by strong labour income growth. Complementing this macroeconomic evidence, survey data from the Consumer Expectations Survey suggests that heightened policy-related and individual uncertainty may also have contributed to the persistence of elevated saving. JEL Classification: D11, D84, E31

Keywords: confidence; Household saving rate; income; wealth (search for similar items in EconPapers)
Date: 2026-01
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbbox:2026:0008:4

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