{"text":[[{"start":11.56,"text":"Households in four-fifths of European countries are saving more than before the Covid-19 pandemic, as they build up their financial buffers in response to a succession of crises, according to FT analysis."}],[{"start":23.44,"text":"The figures underscore a challenge to the continent’s growth, as economists warn the intensifying energy crisis and rising inflation will spur many consumers to double down on savings at a time when Americans are spending."}],[{"start":37.02,"text":"Savings intentions remain above levels that preceded the pandemic, while confidence remains in the doldrums, according to European Commission consumer surveys."}],[{"start":46.12,"text":"Savings ratios surged dramatically during the pandemic as economies went into lockdown and spending slumped. Economists are therefore closely tracking how saving patterns compare with the situation just before it struck."}],[{"start":58.8,"text":"The IMF expects US GDP to grow at 2.3 per cent this year, propelled in part by strong household spending, versus 0.9 per cent in the Eurozone and 1 per cent in the UK. The resurgence in energy prices this month, given worsening hostilities in the Middle East, could intensify inflation fears among households and further hamper any recovery in Europe."}],[{"start":81.08,"text":"“If households spent even part of those savings, it would give consumption a significant boost. But the renewed rise in energy prices this year has once again clouded the economic outlook,” said Sebastian Dullien, research director of the IMK, a Berlin-based think-tank."}],[{"start":null,"text":"
"}],[{"start":97.28,"text":"In the Eurozone, the gross savings ratio — which measures the share of disposable income not spent on goods and services — was at 14.3 per cent in the first quarter of 2026, well above the average of 12.5 per cent in the five years preceding the pandemic."}],[{"start":113.88,"text":"Analysis of data from Eurostat and the UK’s Office for National Statistics shows that across 18 European countries with data for the first quarter of 2026, 14 have a higher savings rate than on the eve of the pandemic. The US’s savings ratio is below pre-pandemic levels."}],[{"start":130.92,"text":"A range of factors is driving the reluctance to spend, including repeated shocks that have jolted confidence and concerns that a resumed surge in inflation will erode cash savings and hit living standards. Eurozone inflation was 2.9 per cent in July, up sharply from a year earlier."}],[{"start":147.6,"text":"High savings rates could provide the dry powder for a consumer-led recovery if households decide to draw down some of their savings. But there is little evidence of a major turnaround in big Eurozone economies such as Germany."}],[{"start":null,"text":""}],[{"start":160.24,"text":"“Household consumption continues to provide relatively strong support to the US economy amid solid demand for goods and services,” said Marieke Blom, chief economist at ING. “European households remain more cautious, with higher savings acting as a drag on consumption.”"}],[{"start":159.03,"text":"The oddity, said Holger Schmieding at Berenberg Bank, was that the labour market remains robust in countries such as Germany, meaning weak consumer confidence and consumption cannot be put down to fears of job losses. Instead, a succession of shocks has made people far more sensitive to bad news."}],[{"start":193,"text":"“Since the pandemic, one crisis has followed another. That has done lasting damage to many people’s optimism about the future,” Schmieding said, adding that private consumption will be the last part of the economy to stage a meaningful recovery."}],[{"start":null,"text":""}],[{"start":206.48,"text":"A further difference with the US is that in big European countries individuals have a lower direct exposure to stock markets, meaning they have not directly felt the beneficial wealth effects of booming equity valuations."}],[{"start":219.04,"text":"European households hold just under a third of their financial assets in cash and deposits, compared with 12 per cent for US households, who are more heavily invested in equity and investment funds, according to research from think-tanks including the Centre for European Policy Studies."}],[{"start":234.56,"text":"“Among those who say that now is a good time to save, the most frequently cited reason is building up emergency savings. Inflation comes second, followed by general uncertainty,” said Rolf Bürkl, head of consumer climate at the Nuremberg Institute for Market Decisions."}],[{"start":250.16,"text":"“Many households are trying to rebuild their financial buffers. Inflation has eroded not only their purchasing power, but also the real value of their savings.”"}],[{"start":263.76,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1787125347_2288.mp3"}