Household Wealth Rises 5.5% in September
January 22nd, 2013
The net financial wealth of Spanish households – the difference between their savings and loans granted to them – rose by 5.5% in the third quarter of 2012, breaking the negative streak it experienced in the first two quarters of the year.
According to data published yesterday by the Bank of Spain, the increase was 38,763 million euros in the third quarter compared to the previous quarter, although year-on-year household savings declined by 11,356 million euros, equivalent to 1.5%.
However, the financial assets of Spanish households – cash, shares, deposits and income revenue – totalled 1,643 billion euros at the end of the third quarter of 2012, compared with 1,682 billion euros the previous year.
Meanwhile, the household financial liabilities – short- and long-term loans and other outstanding accounts, such as commercial loans and advances – fell to 909,781 million euros between July and September compared to the June figure of 929,912 million euros.
Part of this decline is due to the drop in short-term loans, which went from 36,033 million euros in June to 30.641 million euros in September, reflecting lower consumption with deferred payment, as these loans are often used to purchase goods such as televisions or cars.
El Economista reported that long-term loans also fell, although they had already accumulated several quarters of declines, as the economic crisis resulted in fewer customers requesting loans and financial institutions tightening their conditions.
Specifically, at the end of September, families living in Spain accumulated 813,304 million euros in long-term loans, almost 9,600 million euros less than the previous quarter and 35,809 million euros less than a year earlier.