European Households Lift Savings in 14 of 18 Countries as Inflation Fears Stall Recovery
Updated
Updated · Financial Times · Aug 19
European Households Lift Savings in 14 of 18 Countries as Inflation Fears Stall Recovery
1 articles · Updated · Financial Times · Aug 19
Summary
Four-fifths of European countries with first-quarter 2026 data showed households saving more than before Covid-19, with 14 of 18 posting higher rates and the eurozone savings ratio at 14.3%.
Inflation worries, higher energy prices and repeated economic shocks are driving that caution, economists said, even as eurozone inflation reached 2.9% in July and consumer confidence stayed weak.
That restraint is weighing on growth because household spending remains subdued in Europe while US consumers keep spending; the IMF sees 2026 GDP growth at 0.9% in the eurozone and 1% in the UK versus 2.3% in the US.
Economists say the cash pile could still fuel a later consumer rebound, but there is little sign of a turn yet in major economies such as Germany, where labor markets remain relatively robust.