Institutional Sector Accounts Non-Financial Quarter 2 2026

The seasonally adjusted household saving rate in the second quarter of 2026 was 19.8%. This was higher than the 19.3% rate in Quarter 1 2026 and the 18.8% average since the start of 2023. As Table 1.1 above shows, while both seasonally adjusted income (2.7%) and expenditure (2.1%) rose in the quarter, there was a larger increase in income, leading to the higher saving rate.

The Annual National Accounts 2025, published on the 02 July 2026, contained upward revisions to household income and downward revisions to household expenditure. The combined effect of these revisions has led to an increase in the derived value of household saving and the household saving rate. These revisions are particularly notable from 2020 onwards. Further details of these downward revisions to PCE (affecting household consumption expenditure) and the upward revisions to wages and self-employed profits (affecting household income) are provided in the Background Notes of the Q1 2026 release.

Households can use their savings to add to their wealth in the form of real assets (mainly new homes) and financial assets (such as bank deposits). Unadjusted, saving (B.8g) was €11.1bn in the quarter and capital spending (P.5) was €4.9bn. Households also increased their assets in pension funds (D.8) by over €1bn. Figures from the Central Bank of Ireland show that households' net deposits into banks in Ireland rose by €3bn over Q1 2026. Loan liabilities of households to banks (mainly mortgages for house purchase) were up €1.4bn in the three months, meaning households borrowed more than they repaid. Households' financial assets also include other items such as life assurance funds and shares. Full accounts of assets and liabilities in financial instruments are published by the Central Bank.

Household Income

The largest component of household income is Compensation of Employees (COE): this made up €43.4bn of the €52.2bn unadjusted Total Disposable Income (TDI) in the quarter, which was €2.5bn higher (+6.2%) compared with 2025 Q2. While the number employed increased, the total increase was also due to higher average earnings in the quarter compared with the previous quarter and a year earlier.

Comparing the equivalent quarter of 2025, before price or seasonal adjustment, higher take-home pay meant higher taxes (D.5) and PRSI (D.61) paid by households (see Table 1.2 below). Households also received more in social protection and pension payments (D.62).

Gross Disposable Income (B.6G) of households was €51.1bn in Q2 2026 before price and seasonal adjustment (that is, nominal unadjusted). This was an increase of over €3.1bn (6.6%) on Q2 2025. TDI, which also includes the adjustment for the change in pension entitlements (D.8), was almost €52.2bn in Q2 2026. After accounting for inflation and seasonal factors, household TDI in real terms grew by 2.6% in the twelve months and was also 1.4% higher compared to 2026 Q1 (see PxStat table ISQ04). Figure 1.2 shows TDI before and after adjustments for the quarter.

Consumption

In Q2 2026 households' spending on goods and services was €41bn before price or seasonal adjustments, an increase of 6.9% on Q2 2025. When seasonal factors are taken into account, final consumption of households increased by 2.1% between Q1 2026 and Q2 2026. When the effect of price changes is also removed, the volume of consumption showed an increase of 1% on Q1 2026.

The Consumer Price Index (CPI) shows that prices for consumer goods and services at the end of the quarter (June 2026) were up 3.4% when compared with a year earlier (June 2025). The most significant increases in the 12 months to June 2026 were seen in Education Services (+8.9%), Housing, Water, Electricity, Gas & Other Fuels (+7.3%), and Clothing & Footwear (+7.0%). Furnishings, Household Equipment & Routine Household Maintenance (-0.1%) was the only division to show a decline when compared with June 2025.

A walk-through of unadjusted household income and consumption is shown in Figure 1.3 below with monetary additions or subtractions shown in the blue and green bars respectively. The orange bars show the main three balancing items of household gross disposable income (B.6G), household gross saving (B.8G) and household net lending/borrowing (B.9). The euro figure can be seen by hovering over the bar for each item and are also shown in Table 1.2 below. All values in Figure 1.3 and Table 1.2 are unadjusted, before price or seasonal adjustments.