MADRID – The month of July ended with €942.8billion in savings. This is a new record after the last record amount was registered last June with €941.7billion.
The amount of Spanish savings at the end of July was the highest figure in the historic series started in 1989. The balance had increased by 5.6% compared to the month of July last year.
Compared to June this year, when the previous record of €941.7billion was set, savings have increased by almost 0.12%. This is according to preliminary data published by the Bank of Spain on Thursday.
The fact that savings have now increased goes against the normal pattern. At this time of the year, savings are normally less. Because in this month vacations are paid, the self-employed have to pay their taxes for the second quarter. And also the first instalment takes place from the corporate income statement.
The pandemic is fuelling thrift
Over the past 12 months, the trend has been for households to steadily increase their savings as the economic crisis caused by the COVID-19 pandemic continued. This situation prompted families to be more careful with their spending.
Corporate deposits also increased by 2.3% compared to July last year (€294.9billion). However, compared to the month of June this year, they fell by about 2% from the total amount of €300.8billion at the end of June.
This difference is mainly due to the fact that corporate deposits have changed their trend throughout the year, mainly due to liquidity needs arising from the corona measures that curtailed economic activity.