Savings rate at 24-year high
The household savings rate continues its marked recovery, according to national accounts published by the Australian Bureau of Statistics yesterday. The ABS put the savings ratio in the March 2011 quarter at 10.7 per cent on a trend basis, a level last reported in the mid-1980s.On a seasonally adjusted basis, the ABS put the savings ratio at 11.5 per cent for the quarter, which is up from recent quarters but in line with the ratio in late 2008 and 2009.This ratio was negative for a time in the first half of the 2000s, a period in which growth in household credit increased swiftly.