Consumer Spending Could Be Poised for Rebound
Household savings have started dropping again, but bank analysts say it is too early to tell if it is a trend.
In March, individuals' deposits fell more than 10 million euros - the first decrease in 18 months.
Sampo Bank's personnel and retail banking director Tõnu Vanajuur said a one-month drop cannot be called a change in the strong savings trend. He said it should have to continue for two months and be reflected by consumer spending data.
"On the whole, consumer spending was impacted in the first quarter by the rising prices of many goods and services, constant rise in fuel prices and increased housing expenses, primarily increased by heating prices in the cold period," Vanajuur said.
But Kati Kusmin, chairman of ETK, a chain of consumers' cooperatives, said consumers had started spending more confidently, saying that retail volumes were up 10-11 percent in the first few months of 2012 compared to the same period last year.
Kristopher Rikken