Europeans accumulate 700B euros in excess savings

As Europe’s economy reopens, consumers have already begun a “revenge spending” spree in some areas, according to BlackRock investment company, who suggested that a strong rebound in economic activity will lead to a deluge of consumer spending on dining, drinking, travel, and leisure, Report informs referring to CNBC.

Meantime, the increased rollout of vaccines across the developed world has enabled major economies to reopen cautiously and consumers to begin spending again.

“We call this ‘revenge spending’ – people are thrilled to be gaining a taste of freedom, and so splurge on social occasions and discretionary items,” BlackRock Fundamental Equities Co-CIO Nigel Bolton and Sophie Steel, head of the consumer industry group, said in the report.

Around 700 billion euros ($852.8 billion) of excess savings are waiting to be deployed across Europe and the UK.

A survey of around 5,000 consumers across Europe and the UK showed that travel and hospitality were high on the agenda. Still, mobility sectors such as autos and fuel can also expect a splurge.