This box uses the ECB Consumer Expectations Survey (CES) to assess euro area household saving behavior since the start of the coronavirus (COVID-19) pandemic. Most respondents reported that during the pandemic they were not able to increase their savings. Those that were able to do so reported that COVID-19-related restrictions, fear of infection, and precautionary motives were the most important reasons for accumulating savings. The findings indicate that the bulk of these accumulated savings were not expected to be spent quickly, tempering expectations of widespread pent-up demand during the economic recovery. Furthermore, because pandemic-related savings were highly concentrated among higher-income households with low exposure to energy-intensive expenditures, they offer limited potential to shield the ongoing recovery of consumption from adverse macroeconomic shocks, such as surges in energy prices.Recommended citation: Dossche, M., Georgarakos, D., Kolndrekaj, A., Tavares, F. (2022), "Household saving during the COVID-19 pandemic and implications for the recovery of consumption," Economic Bulletin Boxes, European Central Bank, vol. 5."
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