Yesterday’s ABS National Accounts data were good news, showing a continuation of strong growth in demand in Queensland at 3.6% over the June quarter. One of the most interesting pieces of data in the National Accounts is the household saving ratio, which remains stubbornly high as a result of the uncertainty that has persisted since the 2008 financial crisis:
The high household saving ratio is a major reason that, although the economy is performing reasonably well, many retailers continue to struggle.
Queensland Economy Watch 
Check out http://www.eurekareport.com.au/graphs/list Shows savings may not be that high over the long term – a return to a more normal level?
Agreed. And savings are either investment or delayed consumption. Neither of which are bad in the long run.
Yes, in the long-term the economy will adjust and we’ll be better off from having a higher savings rate, but in the short-term it is clearly having adverse impacts on the retail sector.
Thanks for the link Gavin. It’s possible that the financial crisis has permanently shocked us into the savings habits of the generations that went through war and depression. However I expect that, once things settle down in the world economy and the domestic economy appears stronger, the savings rate will decline.
Pingback: Qld loses 20,000 sales jobs over last 12 months | Queensland Economy Watch