Yet a sharp drawdown in the excess savings created by COVID-19 could be a curve ball that slams into bullish sentiment.
U.S. excess savings have fallen to around $500 billion from around $2.1 trillion in August 2021, the San Francisco Federal Reserve estimates.
In Europe, Deutsche Bank reckons excess savings in Sweden, struggling to contain a property slump, have dwindled.
Reuters GraphicsRUNNING OUTDefinitions for excess savings differ, but economists generally agree that this means savings that went beyond trend levels during the pandemic.
Cardano chief economist Shweta Singh said U.S. pandemic excess savings are likely to be depleted by year-end.
Persons:
Rachel Adams, Janus Henderson, Oliver Blackbourn, Shweta Singh, Guy Miller, Jamie Dimon, Ben, Eren Osman, Arbuthnot Latham, Janus Henderson's Blackbourn, U.S . Russell, Russell, Goldman Sachs, Blackbourn, Zurich's Miller, Simon Bell, Guilluame Paillat, Paillat, Naomi Rovnick, Sharon Singleton
Organizations:
Oxford, REUTERS, San Francisco Federal, Deutsche Bank, Reuters, Insurance Group, Ryanair, JPMorgan, Unilever, U.S ., London's, Bank of, Aviva, Thomson
Locations:
Britain, London, China, Europe, U.S, Sweden, United States, downturns, Australia