What happens to the national economy when household spending exceeds savings?

When household spending exceeds savings, it can stimulate economic growth in the short term as increased consumption drives demand for goods and services. However, if this trend continues, it may lead to higher levels of debt and financial instability for households, potentially resulting in decreased spending in the future. Additionally, excessive reliance on consumption without adequate savings can undermine long-term economic resilience and growth, as households may struggle to cope with unexpected expenses or economic downturns.