Savings barometer, 1st quarter 2017:
Households’ loans increasing at a steady pace
Statistical news from Statistics Sweden 2017-05-23 9.30
Households’ loans rose by 6.8 percent at an annual rate in the first quarter of 2017, the same rate of increase as in the fourth quarter of 2016. Households’ financial savings, new savings minus increase in debt, amounted to SEK 57 billion in the first quarter of 2017, which was slightly lower than in the corresponding quarter in the last four years.
Households’ loans rose by 6.8 percent at an annual rate in the first quarter of 2017, the same rate of increase as in the fourth quarter of 2016. Households’ financial savings, new savings minus increase in debt, amounted to SEK 57 billion in the first quarter of 2017, which was slightly lower than in the corresponding quarter in the last four years.
Source: Statistics Sweden
Amortisation requirements on new loans were introduced on 1 June 2016, and in the second half of 2016 growth in households' loans was slightly lower than before. The annual rate of increase for loans was the same in the first quarter of 2017 as in the fourth quarter of 2016. Household loans consist to nearly 80 percent of housing loans in banks and housing credit institutions. The category ‘Other loans’ consists mainly of loans from financial companies and amounted to SEK 73 billion at the end of the first quarter in 2017.
Households made net purchases of shares and funds
Net deposits in bank accounts continued to decline and amounted to SEK 8 billion in the first quarter. The trend of decreased amounts of cash in the economy has continued, and in the two most recent years, households’ holdings of bank notes and coins issued by the Riksbank decreased by 27 percent. Net purchases of shares and funds amounted to SEK 1 billion and SEK 13 billion respectively in the first quarter. There were net sales of bond and money market funds, while there were net purchases of equity funds and other funds.
Large net purchases of tenant ownership rights
Households’ purchases of newly produced tenant-owned apartments and apartments with changing rights from tenancy to tenant-owned apartments are a financial asset. Tangible assets such as one- or two-dwelling buildings with ownership rights are not included in the Savings Barometer. Net purchases in tenant ownership rights amounted to SEK 13 billion in the first quarter, which is the highest listing in a first quarter since the beginning of the time series. This is mainly explained by the high level of new production.
Lower level of financial savings but increased financial net wealth
New savings in financial assets was SEK 102 billion, while debts increased by SEK 45 billion in the quarter, which provided SEK 57 billion in financial savings. This is a slightly lower level of financial savings than in the most recent years. The average savings in the first quarter in the last four years was SEK 72 billion. Net financial wealth, that is, financial assets minus liabilities, amounted to SEK 9 058 billion at the end of the quarter.
Individual financial savings excluding accruals, which show savings in more liquid assets, were significantly lower, and amounted to minus SEK 20 billion. The reason why these savings are lower than the total savings is mainly due to significant deposits to occupational and premium pensions, as well as households’ accrual of taxes that are excluded from individual savings.
Definitions and explanations
Financial savings are calculated as the difference between transactions in financial assets and transactions in liabilities.
No significant revisions or methodology changes are published in the Savings Barometer. These are instead published in the Financial Accounts, where there is more time for calculations and reconciliation with other sectors, and where revision documentation is published.However, minor revisions can occur due to, for instance, revised primary statistics.
In connection with the publication of the Savings Barometer for the first quarter of 2017, the entire time series will be updated from the first quarter 2009 onwards with the revisions introduced in the Financial Accounts’ publication on 23 March. More detailed descriptions of major revisions are provided in the Statistical Report for Financial Accounts:
Next publishing will be
2017-08-31 at 09:30.
Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.