Europeans earning and saving more

European consumers continue to have mixed feelings about the economy and are increasing their savings. Based on a recent survey, senior partner Jessica Moulton and coauthors note that consumers in Europe are also reporting increased income and reduced spending in the past quarter. Nearly 30 percent of respondents indicate they’ve begun more carefully tracking their expenses to boost their savings.

Consumers in Europe continued to improve their household finances by reducing their spending and increasing their savings.

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Three area charts show how European consumers’ spending, income, and savings have changed over the past 3 months. The share of respondents who said their spending has decreased has remained relatively steady, as has the share who said their spending has increased. The share of respondents who said their income has increased has remained relatively steady, while the share who said their income has decreased has dropped slightly. The share of respondents who said their savings have increased has risen slightly, while the share who said their savings have decreased has dropped slightly.

Source: McKinsey ConsumerWise EU-5 Sentiment Survey, May 1–5, 2024 (n = 5,103).

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To read the article, see “An update on European consumer sentiment: A sunnier outlook ahead of summer?,” June 21, 2024.