fost org

Household savings falls hard and stays at 4.4% of income The saving rate of households and nonprofit institutions stood at 4.4 percent of their disposable income in the first quarter of this year, up 3.7 points lower than a year ago due to the higher household spending and the lowest since the first quarter of 2008, according to the National Statistics Institute (INE). The value of quarterly savings of Spanish households stood at 7340 million, representing 6.219 million euros less than the same period in 2010. The disposable income of households in the first quarter rose 0.6% in value year on year to reach 167.855 million euros, leaving the financing capacity of EUR 3,790 million, 1.4% of quarterly GDP. The government, meanwhile, in the first quarter recorded a net borrowing of EUR 6.283 million, a figure equivalent to 2.4 percent of GDP and four points more than a year ago. This increased need for government funding due to lower annual disposable income by 3 percent, reaching 48.253 million. At the same time, the final consumption expenditure of general government rose 0.3 percent in the first quarter compared with the same period last year, so the savings are reduced by non profit organizations 42.5 percent. Source: profit