“The purchasing power of households, after six years of almost uninterrupted fall, has stabilized in recent months. This is favorable to the recovery which will have to count, in addition to exports, on the stabilization of private consumption”, he declares Sergio De Nardis chief economist NOMISMAcommenting on the ISTAT data on the propensity of families to save.
“However, the data also fuels reasons for concern because it highlights the structural deterioration of living conditions generated by the period of recession. In per capita terms, the purchasing power of Italian families is 25 years behind. This is complementary to the significant increase in poverty in recent years.
There are also economic concerns. The improvement in incomes is not accompanied by an equal increase in consumption: the propensity to save has returned to growth. The economy needs spending consumers. The need to rebuild the wealth affected in past years, but also the high level of uncertainty contribute to the rise in savings.
In a context marked by the deterioration of the labor market, the uncertain climate is increased by confusion regarding taxation, by the continuous reopening of construction sites that were thought to be closed (see pensions), by political slip-ups. All of this fuels fears, precautionary behavior and spending postponements, neutralizing the positive news that comes from other fronts (reduction of the spread).
An economic policy that seeks to safeguard the recovery and restore impetus to Italy cannot therefore evade the starting point constituted by the very strong deterioration suffered by families. It must then set itself the minimum objective of clearly indicating the fiscal and regulatory conditions in which households and businesses will be called to make their spending and investment decisions" - he concludes of Nardis.
