Sharp decline in the deficit/GDP ratio (-2.3%). The purchasing power of families is growing

The purchasing power of families, although showing a more limited development compared to previous periods, appears to be growing for the seventh consecutive quarter: compared to a 0.2% increase in the implicit consumption deflator, it grew by 0.4% compared to the previous quarter. This was revealed by Istat, reporting that the propensity to save, equal to 9.2%, decreases cyclically (-0.8%), but in trend terms continues its growth path.

The disposable income of consumer families grew by 0.6% compared to the previous quarter, while consumption grew by 1.6%.

In the third quarter of 2024, the impact of the public administration deficit on GDP improved significantly compared to the corresponding quarter of 2023, reaching a level of -2.3%. In the same period in 2023, it was at -6.3%.

The primary balance of PAs (debt net of interest expense) was positive, with an impact on GDP of 1.7% (-2.8% in the third quarter of 2023).

The current balance of the PAs was also positive, with an impact on GDP of 1.9% (1.6% in the third quarter of 2023). Istat also reports that the profit share of non-financial companies, equal to 42.4%, decreased by 0.3 percentage points compared to the previous quarter. The investment rate of non-financial companies, at 21.7%, decreased by 0.4 percentage points compared to the previous quarter.