Spanish households failed to save in the third quarter. According to the National Institute of Statistics (INE), the savings rate stood at -3.2% of their disposable income. This is the second fall so far this year, after the one registered in the first quarter. It was in the first three months of the year when it experienced its first decline in three years. This drop contrasts with the data for the second quarter, when the household savings rate stood at 16.1%, the highest for the year.
Compared to a year ago, the household savings rate was -3.2% in the third quarter, compared to 6.4% in the same quarter of the previous year. The household savings rate has maintained a downward trend since, with some slight rise, since it reached its maximum in the second quarter of 2020 with 25.1% in full home confinement.
Thus, in the third quarter, households spent more than they saved. Specifically, household disposable income increased by 1.6%, up to 186,600 million euros, while their consumption spending totaled 192,034 million euros, 12% more. Family investment, on the other hand, fell by 2.9%, to 12,901 million euros.
As a result of all this, households registered a financing need of 19,453 million euros in the third quarter, compared to the 954 million estimated for the same quarter of 2021.
If seasonal and calendar effects are eliminated, the savings rate of households obtained in the third quarter was 5.7% of their disposable income, a rate 2.7 points lower than the previous quarter and the lowest since the third quarter of 2019, before for the pandemic to be declared.