Households saved 14.1% of their income in the third quarter of 2024, up from 12.9% in the second three months of the year.
The saving rate has averaged around 14% since the middle of 2022.
After adjustments for seasonal patterns, income rose slightly in the quarter while consumption was largely unchanged, producing a higher saving rate.
Household consumption unadjusted was €37bn in Q3 2024, up from €35bn in the equivalent period last year.
Household incomes rose in the quarter as pay per worker went up and more people were in work.
Household consumption was unchanged (-0.2%) in the third quarter of the year once seasonal and price factors were taken into account. In the consumer-facing sectors of the Services Index there was significant decline in Other Services (-5%) but a small increase in Food Service (+1%). The Retail Sales Index seasonally adjusted volume was steady overall (-0%), but within the overall index there were increases in Pharmaceutical, Medical & Cosmetics (+5%) and Textiles, Clothing & Footwear (+3%) but a decline in the volume of sales in Bars (-9%). Travel & Tourism abroad was down, seasonally adjusted.
The Consumer Price Index (CPI) shows that prices for consumer goods and services at the end of the quarter (September 2024) rose by 0.7% on average when compared with a year earlier (September 2023). The most significant rises in the 12 months to September 2024 were seen in Restaurants & Hotels (+3.9%) and Alcoholic Beverages & Tobacco (+3.1%). The annual change in Restaurants & Hotels costs reflects increases in prices for food and alcoholic drinks consumed in licensed premises, restaurants, cafes etc.
"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 rose by 1% in the third quarter of 2024 compared with the second quarter; this is after adjustment for price and seasonal factors. Before adjustments, total household income in the quarter was €45bn.
The largest component of household income is Compensation of Employees (CoE): this made up €37bn of the €45bn TDI in the quarter. At current prices seasonally adjusted COE was largely unchanged compared with the first quarter of the year (+0.3% change) as there were small increases in numbers employed and average earnings. Beneath these steady aggregates, there were significant movements at sectoral level. Figure 3 illustrates the differences in CoE by economic sector in the quarter compared to Q2 2024 after adjusting for seasonal factors. There was a significant rise in Public Administration (+€181m or +2%), while the Information & Communications sector saw a decrease in pay to workers (-€128m or -3%), as did the Professional, Scientific and Technical sector (-€120m or 2%). Changes were smaller in other sectors.
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 Q4-2023 €m |
|---|---|
| Agriculture, Forestry and Fishing | 1.39967650189504 |
| Industry (excl. Construction) | 75.9520118009877 |
| Construction | 44.9069887897172 |
| Distribution, Transport, Hotels and Restaurants | 5.31275927785373 |
| Information and Communication | -127.929754056865 |
| Financial and Insurance Activities | 13.863750091673 |
| Real Estate Activities | 17.7507872837798 |
| Professional, Admin and Support Services | -120.025452455034 |
| Public Admin, Education and Health | 181.105821749141 |
| Arts, Entertainment and Other Services | 12.3091910516598 |
Household saving rose to 14.1% in Q3 2024, compared with 12.9% in Q2 2024 (current price seasonally adjusted). As Figure 4 shows, this is around the average level since the middle of 2022. As the ratio depends on two larger aggregates (TDI and FCE), it is liable to change each quarter.
Household saving is added to wealth either as real assets (such as new homes), or financial assets (such as deposits), or as paying off liabilities (such as mortgage debt). In Q3 2024, before adjusting for seasonality or inflation, households saved €7.7bn. Investment in dwellings and improvements (most of which was by households) was €4.7bn. 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 €1.3bn over July, August and September (Q3) 2024. Loan liabilities of households to banks were also up €1.0bn in the three months, meaning households took out more loans than they paid off. 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.
Learn about our data and confidentiality safeguards, and the steps we take to produce statistics that can be trusted by all.
Statistician's Comment
The Central Statistics Office (CSO) has today (11 December 2024) released Household Saving Quarter 3 (Q3) 2024.
Commenting on the results, Peter Culhane, Statistician in the National Accounts Analysis & Globalisation Division, said: "Households added €1 to their wealth for every €6 in day-to-day consumption in the third quarter of the year. Taken collectively, our income in the three months was €44bn, we spent €38bn and we saved €6bn. The addition to wealth takes the form of buying new homes, growing bank deposits, pension saving, and paying off debt.
The saving rate has been around the same level for the past two years. Both incomes and consumption have been rising faster than inflation."