European Economics Analyst: Euro area consumption to recover more gradually

One of the most striking features of this cycle in the Euro area has been the absence of an improvement in household consumption despite the rebound in real income, write Goldman Sachs Research economists. Or conversely, the household saving rate increased a further 2pp over the last three quarters, well above the expectations of our economists and ECB staff. Goldman Sachs Research therefore revisits its outlook for household income, savings, and consumption.