Consumer Confidence Indicator Predicts Household Saving Rates Across Europe, Including Pandemic Impact.
The study looked at how consumer confidence can predict how much households save in 14 European countries. They found that consumer confidence and its components can forecast future household saving rates. This means that people's feelings about the economy can help predict how much they will save. The results suggest that combining both subjective (confidence indexes) and objective (economic fundamentals) indicators can give a more accurate picture for forecasting household savings. This is important, especially during times of significant changes like the global pandemic.