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Q3 income and spending up, savings fall

Friday, January 10 11:19:50

In another clear sign that the economy was starting to emerge from the doldrums last year, the CSO today published figures showing that household income rose, as did spending while savings dipped in the third quarter.

On a seasonally adjusted basis, the quarterly gross disposable income of households in Q3 2013 increased by E164m to E21,561m compared to the result for Q2 2013 of E21,397m.

Household expenditure increased by E215m to E19,754 over this same period.

Consequently gross household saving decreased by E51m in the quarter.

The derived gross saving ratio, which expresses saving as a percentage of gross disposable income, decreased from 8.7 per cent in Q2 2013 to 8.4 per cent in Q3 2013.

Gross saving for the total economy increased by E1,641m, from E6,168m in Q3 2012 to E7,809m in Q3 2013.

The gross saving of non-financial corporations increased by E764m and the saving deficit of Government improved by E629m.

However, households saw a fall in saving of E148m over this period.

The saving deficit of Government totalled E2,843m in Q3 2013, an improvement on the Q3 2012 deficit of E3,472m. This change is mainly explained by an increase in taxes paid on production and imports.

The net borrowing of Government was E2,817m in Q3 2013 a decrease of E1,072m on the Q3 2012 result of E3,889m. This improvement is explained by the change in the saving deficit and a reduction of E367m in gross fixed capital formation by Government in Q3 2013.

Non-financial corporations had gross saving of E5,634m in Q3 2013 - up E764m compared with the corresponding quarter of 2012. This improvement is largely explained by an increase in net property income of E520m. However, net lending by this sector in Q3 2013 has only increased by E18m compared to the same quarter in the previous year. This is explained by an increase in gross fixed capital formation of E659m over this period.

Financial corporations had gross saving of E1,864m in Q3 2013 an increase of E389m on the same period of the previous year. An increase of E354m in net property income was the main reason for the increase. Net lending of the sector increased from E1,288m in Q3 2012 to E1,699m in Q3 2013.