Istat: household income and consumption are growing, savings are falling

 In the third quarter of 2021, the disposable income of consumer households increased by 1.8% compared to the previous quarter, while consumption grew by 3.6%. Istat notes it. Households' propensity to save was 11.0%, down by 1.6 percentage points compared to the previous quarter. "The disposable income of households and their purchasing power have grown significantly - explains Istat -, while the sustained growth in final consumption has generated a decline in the propensity to save, which however remained at levels higher than those recorded before the crisis. ". 

Against a 0.6% increase in the implicit household final consumption deflator, purchasing power increased by 1.2% compared to the previous quarter.

The decline in the propensity to save, explains Istat, derives from a growth in final consumption expenditure that is more sustained than that of gross disposable income (+ 3.6% and + 1.8%, respectively).

The investment rate of consumer households in the third quarter of 2021 is estimated at 6.2%, slightly down (-0.1 percentage points) compared to the previous quarter, against an increase in gross fixed investments (+1.0 %) and the previously reported increase in gross disposable income. 

Deficit / GDP falls to 6.2% in the third quarter

In the third quarter of 2021, the net debt of public administrations in relation to GDP was -6.2% (-9.8% in the same quarter of 2020).

Istat notes this, explaining that "the indebtedness of public administrations to GDP has significantly reduced in terms of trends due to the substantial increase in revenues, which more than compensated for the increase in expenditure". 

In the third quarter the tax burden rises to 41%

 In the third quarter of 2021, the tax burden was 41.0%, an increase of 2.0 percentage points compared to the same period of the previous year.