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For more information on this release:
E-mail: nat_acc@cso.ie Michael Connolly (+353) 1 498 4006 Peter Culhane (+353) 1 498 4382
For general information on CSO statistics:
information@cso.ie (+353) 21 453 5000 Visit StatCentral.ie, the portal to Ireland's official statistics On-line ISSN 2009-5600
CSO statistical release, 12 January 2018, 11am

Quarterly Institutional Sector Accounts Non-Financial

Quarter 3 2017

Seasonally Adjusted Gross Household Saving by Component€million
Gross Disposable Income (B.6g + D.8)Final Consumption Expenditure (P.3)Gross Saving Ratio (B.8g)
Q2 201725,68123,2389.5%
Q3 201725,78923,5658.6%

Household Saving Ratio Decreased in Q3 2017

Gross Household Savings Ratio Seasonally Adjusted Q1 2016 – Q3 2017
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The quarterly adjusted disposable income of households (B.6g+D.8) increased by €108m to €25,789m in the third quarter of 2017 (see table above).  Household expenditure (P.3) increased by €327m to €23,565m over this same period.  Gross household saving (B.8g) declined by €250m in the quarter. As expenditure increased faster than income, the derived gross saving ratio, which expresses saving as a percentage of gross disposable income, decreased from 9.5 per cent in the second quarter of 2017 to 8.6 per cent in the current quarter (see Background Notes - definitions).

Increased saving for the overall economy in Q3 2017

Gross saving for the total economy (S.1) increased by €4,887m, when compared to the same quarter last year, from €25,025m in Q3 2016 to €29,912m in Q3 2017 (see Summary Table). This increase was spread across all the institutional sectors.

The data for 2017-Q1, Q2 and Q3 has been revised since the last quarterly sector accounts. These estimates are preliminary and will be subject to further revision. The seasonally adjusted data series which includes Gross Disposable Income, Personal Consumption of Goods and Services and Gross Saving of the Household and NPISH sector is available at www.cso.ie/shorturl.aspx/99. The entire unadjusted series for all variables published in this release are also available at the same link. See Background Notes for definitions of the terms used.

Decrease in Net Borrowing of Government (S.13)

The saving deficit (B.8g) of Government was €233m in Q3 2017, an improvement of €734m on the Q3 2016 deficit of €967m. On the income side, there were increases in taxes on production and imports (D.2 up €395m), taxes on income and wealth (D.5 up €485m) and social contributions (D.6 up €157m), while on the expenditure side there was more final consumption expenditure (P.3 up €347m) and pay to employees (D.1 up €267m) also increased.

The net borrowing (B.9) of S.13 was €1,645m in Q3 2017, €30m less than the Q3 2016 borrowing of €1,675m. The improvement of €734m seen in the gross saving deficit (B.8g) figures is not seen in the net borrowing because a large capital transfer (D.9) resource of €645m in last year's figures was absent this quarter. Expenditure on gross capital formation (P.5) was just €171m higher.

Non-Financial (S.11) and Financial (S.12) Corporations

Non-financial corporations had gross saving of €25,528m in Q3 2017 – up €3,368m compared with the corresponding quarter of 2016. The net lending of €11,088m by this sector in Q3 2017 is up €9,130m from €1,958m in the same quarter last year. This is largely explained by a decrease in gross fixed capital formation (P.51g) of €10,366m over this period, which declined because the large purchases of intellectual property from abroad seen in recent quarters do not appear in this quarter's data.

Financial corporations had gross saving of €1,264m in Q3 2017, an increase of €407m on the same period of the previous year. Net lending (B.9) of the sector increased from €261m in Q3 2016 to €910m in Q3 2017.

Rest of the World Sector (S.2)

The net borrowing (B.9) by the rest of the world from Ireland amounted to €11,405m in Q3 2017 compared with a net borrowing of €1,453m in Q3 2016. This is largely owing to change in the balance of trade in goods and services (B.11) which went from -€15,442m to -€29,816m from the perspective of the rest of the world (that is, Ireland has a surplus). The net borrowing position reflects the level of gross saving in the Irish economy.

Summary Table Quarterly Accounts by Institutional Sector, Q1 2016 - Q3 2017€million
  Key VariablesQuarterS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
(a)B.1*gGross Domestic ProductQ1 2016 64,6085,51843,2073,9236,1045,855
Q2 2016 65,4474,40044,7564,3185,9985,975
Q3 2016 70,3515,65847,8414,5505,8016,500
Q4 2016 75,1624,72052,9765,1185,7376,612
2016 275,56720,295188,78017,91023,64024,942
Q1 2017 67,9495,54045,6424,2476,4176,105
Q2 2017 71,5234,10649,5134,7876,3056,812
Q3 2017 77,5026,01952,8735,0876,0977,425
       
(b)B.2g/B.3gGross Operating Surplus /Q1 2016 38,8612130,4042,3241,0725,040
Mixed IncomeQ2 2016 40,5072131,6382,4661,0725,311
Q3 2016 44,0672334,2982,7751,0725,899
Q4 2016 50,4252439,0843,3121,0726,933
2016 173,86189135,42510,8774,28723,183
Q1 2017 40,6852231,8622,4281,1015,272
Q2 2017 45,7092335,6322,8581,1016,095
Q3 2017 49,8302538,7103,2171,1016,777
       
(c)D.1_D.4Net Primary IncomeQ1 2016 13,2540-10,406-1,4074,32720,740
Q2 2016 14,1190-9,825-1,9584,61221,290
Q3 2016 12,7860-11,231-1,6804,62921,067
Q4 2016 13,7220-10,752-1,2843,82121,937
2016 53,8810-42,214-6,32917,39085,034
Q1 2017 14,9070-11,243-7064,93821,918
Q2 2017 10,3620-13,244-3,3394,21122,733
Q3 2017 13,3860-12,133-1,6774,99622,200
       
(d)B.5gGross National IncomeQ1 2016 52,1152119,9989175,39925,780
= (b + c)Q2 2016 54,6262121,8125085,68426,601
Q3 2016 56,8532323,0681,0955,70126,967
Q4 2016 64,1472428,3322,0284,89328,869
2016 227,7418993,2114,54821,676108,218
Q1 2017 55,5922220,6191,7226,03827,190
Q2 2017 56,0712322,388-4805,31228,828
Q3 2017 63,2152526,5771,5406,09628,977
       
(e)D.5_D.7Net Current TransfersQ1 2016 -9440-6684722,137-2,885
Q2 2016 -6650-2,113514,261-2,865
Q3 2016 -8160-9084082,292-2,608
Q4 2016 -1,2020-2,840-866,846-5,121
2016 -3,6270-6,52984515,535-13,479
Q1 2017 -9200-5715272,725-3,601
Q2 2017 -1,0700-2,481-414,735-3,284
Q3 2017 -1,0520-1,0493822,977-3,363
       
(f)B.6gGross Disposable IncomeQ1 2016 51,1712119,3301,3907,53522,895
= (d + e)Q2 2016 53,9612119,7005599,94523,737
Q3 2016 56,0372322,1601,5037,99324,359
Q4 2016 62,9452425,4921,94211,73923,748
2016 224,1148986,6815,39337,21294,739
Q1 2017 54,6722220,0482,2498,76323,590
Q2 2017 55,0012319,908-52210,04725,545
Q3 2017 62,1632525,5281,9229,07325,615
       
(g)P.3 + D.8Use of Disposable IncomeQ1 2016 -30,78900-635-8,097-22,057
Q2 2016 -30,27000-643-8,355-21,273
Q3 2016 -31,01200-646-8,960-21,407
Q4 2016 -32,89600-657-8,709-23,531
2016 -124,96800-2,580-34,121-88,267
Q1 2017 -31,74900-660-8,478-22,612
Q2 2017 -31,27400-657-8,780-21,838
Q3 2017 -32,25100-658-9,306-22,286
       
(h)B.8gGross SavingQ1 2016 20,3822119,330754-562838
= (f + g)Q2 2016 23,6912119,700-831,5902,464
Q3 2016 25,0252322,160857-9672,952
Q4 2016 30,0492425,4921,2853,030217
2016 99,1468986,6812,8133,0916,472
Q1 2017 22,9232220,0481,589286978
Q2 2017 23,7272319,908-1,1781,2673,707
Q3 2017 29,9122525,5281,264-2333,328
       
(i)Changes in Capital AccountsQ1 2016 -60021-235-34-45299
Q2 2016 -10,16521-8,203-365-514-1,104
Q3 2016 -7,88023-6,886-323227-921
Q4 2016 -13,47924-11,265-421-612-1,206
2016 -32,12589-26,587-1,144-1,351-3,132
Q1 2017 -9,16922-7,557-134-639-861
Q2 2017 -19,65323-18,008-328-483-858
Q3 2017 -1,87625-276-63-477-1,083
       
(j)P.51CConsumption of Fixed CapitalQ1 2016 15,539 13,1782709351,156
Q2 2016 15,600 13,2332719351,161
Q3 2016 15,692 13,3162739351,168
Q4 2016 16,062 13,6502809351,198
2016 62,893 53,3771,0943,7384,683
Q1 2017 16,320 13,8832859351,218
Q2 2017 16,538 14,0792899351,235
Q3 2017 16,632 14,1642909351,243
       
(k)B.9Net Lending (+) / Net Borrowing (-)Q1 2016-4,2434,243425,918450-1,948-219
= (h + i) - jQ2 20162,074-2,07442-1,736-720141199
Q3 2016-1,4531,453451,958261-1,675863
Q4 2016-507507495775851,483-2,186
2016-4,1284,1281786,717576-1,999-1,343
Q1 20172,566-2,56644-1,3911,171-1,288-1,101
Q2 201712,464-12,46446-12,179-1,795-1501,614
   Q3 2017-11,40511,4055011,088910-1,6451,002
Table 1.2 Generation of Income Account€million
RESOURCES (RECEIVED)S.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
B.1*gGross Domestic Product  77,5026,01952,8735,0876,0977,425
D.3Subsidies, Received556 55625216200141
USES (PAID)
D.1Compensation of Employees21,45214021,312 13,8531,7894,996674
D.2Taxes on Production and Imports, Paid6,916 6,9166,246473820116
B.2g/ B.3gGross Operating Surplus/ Gross Mixed Income  49,8302538,7103,2171,1016,777
Table 1.3 Allocation of Primary Income Account€million
RESOURCES (RECEIVED)S.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
B.2g/ B.3gGross Operating Surplus/ Gross Mixed income  49,8302538,7103,2171,1016,777
D.1Compensation of Employees21,45215621,295    21,295
D.2Taxes on Production and Imports, Received6,916906,826   6,826 
D.4Property Income53,80833,02620,782 4,00415,5551121,111
D.41Interest17,0935,20711,886 -17411,85210199
D.42Distributed Income of Corporations7,8534,1373,716 1353,02177483
D.43Reinvested Earnings on Direct Foreign Investment18,14813,8894,259 4,04321600
D.44Other Investment Income10,6389,793845 04660378
D.45Rents77 77 002651
USES (PAID)        
D.3Subsidies, Paid556123433   433 
D.4Property Income53,80818,72435,084 16,13717,2321,510206
D.41Interest17,09310,8416,252 1,5213,0661,510155
D.42Distributed Income of Corporations7,8533,1574,695 4,41927700
D.43Reinvested Earnings on Direct Foreign Investment18,1484,25913,889 10,1713,71800
D.44Other Investment Income10,63846610,171 010,17100
D.45Rents77 77 260051
B.5gGross National Income  63,2152526,5771,5406,09628,977
Table 1.5 Secondary Distribution of Income Account€million
RESOURCES (RECEIVED)S.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
B.5gGross National Income 63,2152526,5771,5406,09628,977
D.5Current Taxes on Income, Wealth, etc.6,035206,015   6,015 
D.61Social Contributions4,48904,489 01,4653,0240
D.62Social Benefits other than Social Transfers in kind6,373816,292    6,292
D.7Other Current Transfers6,5222,3274,196 1372,423551,580
USES (PAID)        
D.5Current Taxes on Income, Wealth, etc.6,035196,016 94526204,809
D.61Net Social Contributions4,48904,489    4,489
D.62Social Benefits other than Social Transfers in kind6,373796,294 08075,4870
D.7Other Current Transfers6,5221,2775,245 2402,4376311,937
B.6gGross Disposable Income  62,1632525,5281,9229,07325,615
Table 1.6 Use of Disposable Income Account€million
RESOURCES (RECEIVED)S.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
B.6gGross Disposable Income62,1632525,5281,9229,07325,615
D.8Adjustment for the Change in Pension Entitlements6580658    658
USES (PAID)        
P.3Final Consumption Expenditure  32,251   9,30622,944
D.8Adjustment for the Change in Pension Entitlements6580658  658  
B.8gGross Saving  29,9122525,5281,264-2333,328
Table 1.7 External Account€million
RESOURCES (RECEIVED)S.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
P.7Imports of Goods and Services 59,836      
D.1 to D.8Primary Incomes and Current Transfers106,80835,70071,108     
USES (PAID)        
P.6Exports of Goods and Services 89,653      
B.11External Balance of Goods & Services -29,816      
D.1 to D.8Primary Incomes and Current Transfers106,80820,36186,447     
B.12Current External Balance -14,477      
Table 1.8 Change in Net Worth due to Saving and Capital Transfers Account€million
LIABILITIESS.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
B.8gGross Saving 29,9122525,5281,264-2333,328
B.12Current External Balance-14,477      
D.9Capital Transfers4415436 1300196110
ASSETS        
D.9Capital Transfers4416435 103024092
P.51cConsumption of Fixed Capital   16,632 14,1642909351,243
B.10.1Changes in Net Worth due to Saving and Capital Transfers-1,197-14,47913,2822511,391973-1,2112,104
Table 1.9 Acquisition of Non-Financial Assets Account€million
LIABILITIESS.1+S.2 Sum Over SectorsS.2 Rest of WorldS.1 Total EconomyS.1N Not SectorisedS.11 Non-Financial CorporationsS.12 Financial CorporationsS.13 General GovernmentS.14+S.15 Households incl. NPISH
B.10.1Changes in Net Worth due to Saving and Capital Transfers-1,197-14,47913,2822511,391973-1,2112,104
P.51cConsumption of Fixed Capital 16,632 16,632 14,1642909351,243
ASSETS        
P.5Gross Capital Formation15,435 15,435-2511,4253541,3372,344
NPAcquisitions less Disposals of Non-Produced Assets0-3,0743,074 3,0430310
B.9Net Lending (+)/ Net Borrowing (-)0-11,40511,4055011,088910-1,6451,002

Background Notes

Description of Institutional Sectors

In the sector accounts, Institutional Sectors are distinguished not in terms of the nature of their production activity (such as agriculture, industry, services, etc.) but rather in terms primarily of the institutional form of the units that make them up. Thus companies, whether engaged in commercial non-financial or financial business, are grouped in a different sector from households, even though the latter are in many cases also engaged in commercial production, and from government or other non-market producers such as voluntary agencies.

Institutional Sectors

The classification system is that of the European System of Accounts 2010 (ESA2010). The sectors and sub-sectors distinguished in the present publication are as follows:

S.1 Resident Economy is the sum of all the sectors of the domestic economy.

S.11 Non-Financial Corporations are corporate bodies producing goods and non-financial services on a commercial basis. They include public limited companies, private companies and other corporate forms of business, whether owned by residents (including the government) or non-residents or both. In particular, therefore, Irish subsidiaries of foreign companies and the Irish branches of foreign companies operating in Ireland on a branch basis are included; while the foreign subsidiaries of Irish companies and the foreign branches of Irish companies operating abroad are excluded (they form part of the Rest of the World sector S.2). The business activities of self-employed persons (quasi-corporations) are in principle to be included here if separate accounts are available for statistical purposes. Under the implementation of ESA2010, entities which operate as holding companies for non-financial corporations are now classified in the financial sector.

S.12 Financial Corporations are corporate bodies producing financial services on a commercial basis. As with S.11, they can take various legal forms, with a range of ownership arrangements. They include monetary financial institutions, other financial intermediaries, financial auxiliaries and insurance corporations and pension funds.

S.13 General Government consists of central and local government. Central government includes the Ireland Strategic Investment Fund (formerly the NPRF), and non-commercial agencies owned and funded by government, but does not include commercial state-owned companies (which are proper to S.11 or S.12 as appropriate).

S.1M: S.14 + S.15 Households and Non-Profit Institutions Serving Households. S.14 consists of persons in their capacity as holders of financial assets or as borrowers. The business assets and liabilities of unincorporated self-employed persons are also mainly reflected in this sector. S.15 consists of non-profit institutions such as charities and non-commercial agencies not owned by the government, such as some schools and hospitals.

S.2 Rest of the World. The figures represent the economy's transactions with non-residents. The conceptual definition is the same as in the Balance of Payments (BOP) statistics. In particular, non-residents include foreign subsidiaries of Irish companies, the foreign branches of Irish companies that operate abroad on a branch basis, and the head offices of foreign companies that operate in Ireland on a branch basis.

S.1N Not Sectorised. In the non-financial accounts an additional residual sector is used to report taxes and subsidies on products (D.29) in the Generation of Income Account (Account 1.2) as it is not possible to allocate these amounts to Institutional Sectors. In addition, throughout these accounts S.1N is used to report the amounts that appear as the statistical discrepancy in the National Income and Expenditure GDP accounts, arising from the use of two independent estimates of GDP (from the Income and Expenditure approaches). In the Annual National Accounts NIE tables 3 and 5, the official estimate of GDP is reported as the average of the two measures, and the discrepancy is therefore displayed as half the difference between the two independent estimates (and thus with different signs in the two tables). The discrepancy is projected forward on a quarterly basis in line with the trends in the Expenditure components and is presented in Table 2 of the Quarterly National Accounts. In the Quarterly Sector Accounts it appears in Gross Domestic Product, the opening item in the Generation of Income Account and is then carried through successive accounts via the balancing item. In the final non-financial account, the full amount of the discrepancy then emerges as the unallocated net lending or borrowing in the economy.

Description of Detailed Non-Financial Accounts

Sector accounts present a coherent overview of all economic processes and the roles played by the various sectors. Each economic process is described in a separate account. The accounts describe successively: generation of income, primary and secondary income distribution, final consumption, redistribution by means of capital transfers, and capital formation. Note that the Production Account (1.1) from the Annual Accounts is not included in these quarterly accounts as the data is not available on a quarterly basis. The accounts record economic transactions, distinguishing between uses and resources (e.g. the resources side of the transaction category Interest (D.41) records the amounts of interest receivable by the different sectors of the economy and the uses side shows interest payable) with a special item to balance the two sides of each account. By passing on the balancing item from one account to the next a connection is created between successive accounts.

The accounts are compiled for the total economy and include accounts for separate domestic sectors and the Rest of the World sector. In this way the sector accounts describe:

  • for each economic process the role of each sector, for instance General Government in income redistribution and Financial Corporations in financing.
  • for each sector all economic transactions and their relation with other domestic sectors and the Rest of the World.

The successive accounts are explained in more detail below. 

Current Accounts

1.1 Production Account

This account is not presented in the Quarterly Non-Financial Accounts as quarterly data is not available.

1.2 Generation of Income Account

This account displays the transactions through which Gross Domestic Product at market prices is distributed to labour (compensation of employees), capital (operating surplus) and government (the balance of taxes and subsidies on production). The balancing item for the Household and NPISH sector in this account is called mixed income, because apart from operating surplus it also contains compensation for work by self-employed persons and their family members. Gross Operating Surplus/Gross Mixed Income (B.2g/B.3g) is the balancing item for the entire account.

1.3 Allocation of Primary Income Account

This account records, as resources, the income from direct participation in the production process, as well as property income received in exchange for the use of land, financial resources and other intangible assets. In addition, this account records the taxes on production and imports received by the government. On the uses side, property income (including interest, dividends, reinvested earnings and land rent) is recorded as well as the subsidies paid by the government.

On this account the interest paid and received are recorded excluding imputed bank services (financial intermediation services indirectly measured - FISIM). In the national accounts insurance technical reserves are seen as a liability of insurance enterprises and pension funds to policyholders. Therefore, the receipts from investing these reserves are recorded as payments from insurance enterprises and pension funds to households, under Other Investment Income (D.44). The balancing item of this account for each sector is Gross National Income (B.5g). The Primary Income for the total economy is the National Income.

1.4 Memorandum-Entrepreneurial Income Account

This account is not presented in the Quarterly series.

1.5 Secondary Distribution of Income Account

The Secondary Distribution of Income Account shows how primary income is redistributed by means of current taxes on income and wealth, social contributions (including contributions to pension schemes), social benefits (including pension benefits) and other current transfers. The balancing item of this account is Gross Disposable Income (B.6g). For the consuming sectors (Households, NPISH and General Government) this item is passed on to Use of Disposable Income Account (1.6). For the other sectors the disposable income is generally equal to saving. This is then passed on to the Change in Net Worth due to Saving and Capital Transfers Account (1.8).

1.6 Use of Disposable Income Account

This account shows the element of disposable income that is spent on final consumption and also the element that is saved. As mentioned above, final consumption only exists for Households, NPISH and General Government. The net equity of Households in pension funds is seen as a financial asset that belongs to Households. Changes in these reserves need to be included in the saving of Households. However, contributions to pension schemes and pension benefits have already been recorded on the Secondary Distribution of Income Account (1.5) as social contributions and social benefits. Therefore, an adjustment is needed in the saving of Households to include the change in pension funds reserves on which they have a definite claim. This adjustment is called Adjustment for the Change in Pension Entitlements (D.8). There is no need for a similar adjustment concerning life insurance because life insurance premiums and benefits are not recorded as current transactions. The balancing item for this account is Gross Saving (B.8g).

1.7 External Account

This account records the summarised transactions of the Rest of the World Sector (S.2), including on the uses side exports of goods and services, primary incomes and current transfers receivable. The resources side of this account includes imports of goods and services together with primary incomes and transfers payable. The balancing item is Current External Balance (B.12), which records the balance on current accounts with the Rest of the World.

Capital Accounts

1.8 Change in Net Worth due to Saving and Capital Transfers

On this account the capital transfers are recorded and combined with gross saving and the current external balance. The resulting balancing item is Changes in Net Worth due to Saving and Capital Transfers (B.10.1).

1.9 Acquisition of Non-Financial Assets Account

On this account, Gross Fixed Capital Formation (P.51), Changes in Inventories (P.52) and Acquisitions less Disposals of Valuables and Non-Produced Non-Financial Assets (N.P.) are recorded among the uses. The decline in the value of fixed capital goods caused by consumption of fixed capital goods is recorded among the resources (P.51c). The balancing item is Net Lending(+) or Borrowing(-) (B.9). It shows the amount a sector can lend/invest or has to borrow as a result of its current and capital transactions.

Seasonal Adjustment

Seasonal adjustment is conducted using the direct seasonal adjustment approach. Under this approach, each individual time series is independently adjusted, i.e. aggregate series are adjusted without reference to the component series.

As part of the seasonal adjustment process, ARIMA models are identified for each series based on unadjusted data spanning Q1 1999 to Q1 2017. These models are then applied to the entire series (Q1 1999 to Q3 2017). Seasonal factors and the parameters of the ARIMA models are updated each quarter.

The adjustments are completed by applying the X-13-ARIMA model, developed by the U.S. Census Bureau to the unadjusted data. This methodology estimates seasonal factors while also taking into consideration factors that impact on the quality of the seasonal adjustment such as, for example:

  • calendar effects, e.g. the timing of Easter
  • outliers, temporary changes and level shifts in the series

For additional information on the use of X-13-ARIMA, see https://www.census.gov/srd/www/x13as/.

Derived Seasonally Adjusted Household Saving Ratio

Seasonally adjusted estimates of Household Saving are compiled using the indirect seasonal adjustment approach. Under this approach the two main aggregates, Household Disposable Income (B.6g + D.8) and Final Consumption Expenditure of Households (P.3), are independently adjusted. The derived saving is the difference between the two adjusted series of Household Disposable Income and Final Expenditure of Households. This method for estimating the seasonally adjusted value for a small net residual of two large aggregates, such as Household Saving, is considered to be a more appropriate estimation procedure.

The use of these saving either for financial investment or debt reduction is not recorded in these accounts but is recorded in the financial account (see Quarterly Financial Accounts published by the Central Bank of Ireland and http://www.cso.ie/en/releasesandpublications/ep/p-isanff/isanff2016/ for annual integrated financial and non financial accounts).

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