AllianceBernstein warns consumer weakness threatens European growth
AB•AllianceBernstein warns rising savings intentions and weakening real incomes could threaten European growth. It forecasts 0.9% GDP growth in 2026, while household savings reached 14.2% of disposable income.
1. Consumers pose a risk
AllianceBernstein warned that rising savings intentions and weakening real incomes could make European consumers a key vulnerability for growth. It forecasts European GDP growth of 0.9% in 2026, with trade supporting performance while private demand remains subdued.
2. Savings and spending
Household consumption rose 0.4% in the second quarter, contributing 20 basis points to GDP growth. Euro-area household savings reached 14.2% of disposable income, and intentions to save more over the next 12 months threaten spending; the European Central Bank has raised rates twice since June, weighing on loan demand and consumer confidence.
