Household disposable income rises

Irish households' disposable income rose by 2.2 per cent in the third quarter of 2012, when compared with the same period in 2011.

This was an increase of €487 million, according to quarterly institutional sector accounts published today by the Central Statistics Office.

Household spending climbed by €127 million in the third quarter when compared with the same period in 2011. However, spending levels in the third quarter of 2012 were lower than they had been during the previous six months.

The institutional sector accounts, which brings together information on the activities of households, businesses and the Government, show that the gross amount of household savings was €11.92 billion for the first three quarters of 2012. This is more than the €9.3 billion of total savings recorded during 2011.

The derived gross savings ratio increased by 14.5 per cent in the second quarter to 16 per cent in the third quarter last year. This ratio expresses household savings as a percentage of gross disposable household income.

Meanwhile, Government borrowing has fallen from €10.4 billion in third quarter 2011 to €5 billion in the same period in 2012. This represents a reduction of 52 per cent, in net borrowing.