Analysis-Europe’s growth rebound hinges on savings puzzle

European families are sitting on an ever-growing pile of savings, confounding hopes that consumer largesse can boost the region’s economy as it falls yet further behind that of the United States. This rise in savings when consumers are enjoying the best income growth in years goes against textbook wisdom on consumer behaviour and has prompted some to question whether there has been a paradigm shift that bodes ill for Europe’s future growth. “When I think about prospects for activity going forward, consumer behaviour really is the linchpin,” Bank of England policymaker Catherine Mann said.Read More