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In Quarter 1 (Q1) 2025, the seasonally adjusted household saving rate was 14.0%.
This saving rate was down from 14.8% in Q4 2024, but close to the overall average since the start of 2023.
After adjustments for seasonal patterns, Irish household consumption and incomes both rose in Q1 2025, and a faster rise in consumption led to a lower saving rate during that time.
Growth in household income is driven by higher pay to workers, as the numbers working grew as well as average pay.
Household saving was 14.0% in January, February and March (Q1) 2025, compared with 14.8% in Q4 2024 (current price seasonally adjusted). As Figure 1 shows, this is around the average level since the start of 2023. As the ratio depends on two larger aggregates (Total Disposable Income and Final Consumption Expenditure), it is liable to change each quarter.
Household saving is added to wealth as real assets (such as new homes), or financial assets (such as deposits), or as paying off liabilities (such as mortgage debt). In Q1 2025, before adjusting for seasonality or inflation, households saved €8.2bn. Investment in dwellings and improvements (most of which was by households) was €3.8bn. Additions to pension funds (D.8) were €1.1bn. Figures from the Central Bank of Ireland show that households' net deposits into banks in Ireland rose by €3.0bn over Q1 2025. Loan liabilities of households to banks were up €0.7bn in the three months, meaning households borrowed more than they repaid (mainly mortgages for house purchase), in addition to using saving from current income. A detailed quarterly breakdown of changes in financial assets and liabilities will be published by the Central Bank and a revised saving estimate from the non-financial accounts will be published in the coming weeks.
In Q1 2025 households spending on goods and services was €38bn before price or seasonal adjustments. Household consumption is normally lower in the January-March period (Q1) than in October-December (Q4), and in the first quarter of this year it was down 9% unadjusted. However, once seasonal factors are taken into account, final consumption of households was up slightly (+1.8%) in the first quarter of 2025. When the effect of prices changes is also removed, the volume of consumption increased by 0.8%. The higher volume changes was due to similar growth in expenditure on both goods and services. In the consumer-facing sectors of the Services Index the volume of Accommodation services was up 3%, while Food Service was down 3%. The Retail Sales Index seasonally adjusted volume of sales in Bars was down 7% but up overall (+1%). The figures are seasonally adjusted and price adjusted, so the fall in consumption in bars and restaurants is in addition to the usual fall-off after Christmas.
The Consumer Price Index (CPI) shows that prices for consumer goods and services at the end of the quarter (March 2025) were up 2.0% when compared with a year earlier (March 2024). The most significant increases in the 12 months to March 2025 were seen in Alcoholic Beverages & Tobacco (+4.2%) and Food & Non-Alcoholic Beverages (+3.3%). The annual change in Alcoholic Beverages & Tobacco costs reflects higher prices for tobacco products and alcoholic drinks sold in supermarkets and off-licences. Clothing & Footwear (-1.9%) and Furnishings, Household Equipment & Routine Household Maintenance (-0.8%) were the only divisions to show a decrease when compared with March 2024.
"Household Consumption" and "Individual Consumption Expenditure" in this release both mean Final Consumption Expenditure (FCE) of Households (code P.3 in the European System of Accounts). This is less than the item "Personal Consumption Expenditure" in the Quarterly National Accounts, which includes both FCE of households and Purchased Market Production funded by Social Transfers in Kind from Government (code D.632). Therefore the changes in household Individual Consumption Expenditure in this release differ from those reported in the Quarterly National Accounts.
FCE at constant prices is deflated based on price changes for households resident here, including expenditure by Irish residents when they go abroad, but excluding expenditure by foreign tourists here in Ireland. This differs from the Consumer Price Index (CPI), which excludes expenditure by Irish residents abroad and includes expenditure of foreign tourists within Ireland. While the CPI is discussed above for the insights it provides into certain parts of Individual Consumption Expenditure, it is not the same as the deflator used for FCE of Households.
Total Disposable Income (TDI) of households was €46bn in the quarter before adjustment. After adjustment for seasonal factors, this was up 1% compared to the final quarter of 2024. After adjustment for price as well as seasonal factors, income was unchanged (0%) on Q4 2024. The changes in TDI before and after price and seasonal adjustment are shown in Figure 3.
The largest component of household income is Compensation of Employees (CoE): this made up €41bn of the €45bn TDI in the quarter. At current prices seasonally adjusted COE was higher compared with the final quarter of 2024 (+3.3% change). This was due to a combination of higher numbers employed and a rise in average earnings in the quarter. Figure 4 illustrates the differences in CoE by economic sector in the quarter compared to Q4 2024 after adjusting for seasonal factors. There was a significant rise in the Professional, Admin and Support sector (+€537m or +8.8%), and Public Administration (+€330m or +3.0%). Changes were smaller in other sectors but all showed an increase in the quarter.
As well as wages, TDI also includes other income such as self-employed earnings, interest and dividends received and social benefits (such as Child Benefit), but is after deduction of income taxes, social contributions (such as PRSI) and interest paid. More detail will be published in the Institutional Sector Accounts release next month.
| sector | Change (Seasonally Adjusted) since Q4-2024 €m |
|---|---|
| Agriculture, Forestry and Fishing | 6.01430296278903 |
| Industry (excl. Construction) | 142.15886617136 |
| Construction | 59.75826059472 |
| Distribution, Transport, Hotels and Restaurants | 165.2649428809 |
| Information and Communication | 70.2977580540401 |
| Financial and Insurance Activities | 15.8386239271304 |
| Real Estate Activities | 11.930652564203 |
| Professional, Admin and Support Services | 537.02071755117 |
| Public Admin, Education and Health | 329.6714220717 |
| Arts, Entertainment and Other Services | 5.287606061769 |
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Statistician's Comment
The Central Statistics Office (CSO) has today (12 June 2025) published Household Saving Quarter 1 (Q1) 2025.
Commenting on the release, Peter Culhane, Statistician in the National Accounts Analysis & Globalisation Division, said: "Households saved 14.0% of their income in the first three months of this year (Q1) which is in keeping with the 2023 and 2024 average. This level of saving adds to overall household wealth in the form of buying new homes, growing bank deposits, pension savings, and paying off debt.
Household income rose, mainly driven by compensation of employees (wages, salaries and other benefits). The number in work is growing as is average pay. At the same time, households are spending more on final consumption such as food, rent and transport. Increased spending is due to higher prices (inflation) as well as higher volumes of goods and services being bought.
Today's results are preliminary and are subject to revision after the release of Annual National Accounts for 2024 and final Quarterly National Accounts for Q1 2025 in the coming weeks."