Institutional Sector Accounts Non-Financial Quarter 4 2025

The seasonally adjusted household saving rate in the fourth quarter of 2025 was 10.9%. This was lower than the revised third quarter rate of 13.7%. This was also the lowest rate in over a decade since the 10.7% rate in Quarter 1 2016. As Table 1.1 above shows, while seasonally adjusted expenditure rose by 2% in the quarter, income decreased by 1%, leading to the lower saving rate. The saving rate tends to be lower in the fourth quarter due to additional household spending at Christmas. Disposable income in this sector is also affected by tax payments for the self-employed generally being paid in the fourth quarter. 

The overall household saving rate in 2025 was provisionally estimated at 13%, slightly lower than the 13.2% rate for 2024, but slightly above the 12.7% average since the start of 2023. This 13% saving rate for 2025 was the difference between household total disposable income of €185bn and consumer spending of €161bn. This meant households added more than €1 to their wealth for every €8 of disposable income in 2025 or €24bn in the year, an average of €2bn per month.

Users should note that relatively small changes in the underlying estimates can have large changes in the saving ratio. This is because the ratio depends on two much larger aggregates (Total Disposable Income and Final Consumption Expenditure), and consequently it is liable to both change (across periods) and revision (within a period) as new data becomes available.

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 €1.4bn in the quarter and capital spending (P.5) was €4.7bn. Households also increased their assets in pension funds (D.8) by €1bn. Figures from the Central Bank of Ireland show that households' net deposits into banks in Ireland rose by €1.6bn over Q4 2025. Loan liabilities of households to banks (mainly mortgages for house purchase) were up €1.9bn 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 will be published by the Central Bank.

Household Income

The largest component of household income is Compensation of Employees (CoE).

In Q4 2025 this made up €39.3bn of the €44bn unadjusted Total Disposable Income (TDI), which was €0.1bn higher (+0.3%) compared with 2024 Q4. See Table 1.2.

In 2025 as a whole, CoE made up €160.5bn of the €185bn unadjusted Total Disposable Income (TDI), which was €7.8bn higher (+5.1%) compared with 2024. See Table 1.3.

There was a rise in the number employed and employed people had higher average earnings.

Comparing the equivalent quarter of 2024, 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 less in social protection and pension payments (D.62). Gross Disposable Income (B.6G) of households was €43.3bn in Q4 2025 before price and seasonal adjustment (that is, nominal unadjusted). This was an increase of €0.3bn (0.7%) on Q4 2024. TDI, which also includes the adjustment for the change in pension entitlements (D.8), was €44.3bn in Q4 2025. After accounting for inflation and seasonal factors, household TDI in real terms decreased by 1% in the twelve months and was 1.3% lower compared to 2025 Q3 (see PxStat table ISQ04). Figure 1.2 shows TDI before and after adjustments for the quarter.

Looking at 2025 as a whole, before adjustment, higher take-home pay meant higher taxes (D.5) and PRSI (D.61) paid by households (see Table 1.3 below). Households also received more in social protection and pension payments (D.62). Gross Disposable Income (B.6G) of households was €181bn in 2025 before adjustment. This was an increase of €7.4bn (4.3%) on 2024. TDI, which also includes the adjustment for the change in pension entitlements (D.8), was €185bn in 2025. After accounting for inflation, household TDI in real terms increased by 2.6% in 2025 (see PxStat table ISQ04).

Consumption

In Q4 2025 households' spending on goods and services was €42.9bn before price or seasonal adjustments. In Q4 2025 unadjusted household consumption increased 9.6% on Q3 2025. When seasonal factors are taken into account, final consumption of households was up 2% between Q3 and Q4 2025. When the effect of price changes is also removed, the volume of consumption showed an increase of 0.9% on Q3 2025.

The Consumer Price Index (CPI) shows that prices for consumer goods and services at the end of the quarter (December 2025) were up 2.8% when compared with a year earlier (December 2024). The most significant increases in the 12 months to December 2025 were seen in Education (+8.9%) and Clothing & Footwear (+5.7%). Furnishings, Household Equipment & Routine Household Maintenance (-0.4%) was the only division to show a decline when compared with December 2024.

In all of 2025, households' spending on goods and services was €161bn before price or seasonal adjustments. In 2025 unadjusted household consumption increased 4.5% on 2024. When the effect of price changes is also removed, the volume of consumption showed an increase of 2.9% on 2024.

A walk-through of 2025 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 1.3 below. All values in Figure 1.3 and Table 1.3 are unadjusted, before price or seasonal adjustments.