The household savings ratio fell to a new, post great recession low over the December 2016 quarter, a response to subdued income growth.The saving ratio was 5.2 per cent in seasonally adjusted terms in December quarter 2016, down from the 6.3 per cent recorded in the September quarter. This decline was driven by weak growth in household gross disposable income of 0.2per cent, while household spending lifted to 1.2 per cent from subdued growth of 0.6 per cent in the previous quarter.The ratio is the lowest it has been since the December 2008 quarter and down from a ration around seven per cent in late 2015.The ratio reached a post GFC peak near ten per cent in late 2011.The Reserve Bank of Australia projected a fall in the national savings ratio a year ago, as a result of households deciding to maintain higher consumption while income growth slowed.