|Seasonally Adjusted Gross Household Saving by Component||€ Million|
|Gross Disposable Income (B.6g + D.8)||Final Consumption Expenditure (P.3)||Gross Saving Ratio|
On a seasonally adjusted basis, the quarterly gross disposable income of households (B.6g+D.8) was €27,282m in the second quarter of 2018 – a significant increase compared with this income of €26,646m in the previous quarter. There was also a large increase in quarterly household expenditure (P.3) of €494m over the same period (€24,534m in Q2 2018 compared with €24,040m in Q1 2018). The derived gross saving ratio increased slightly from 9.8% to 10.1% (see Background Notes - definitions).
Annual gross saving for the overall economy in Q2 2018 rises
Gross saving (B.8g) for the total economy (S.1) increased by €6,215m, from €20,517m in Q2 2017 to €26,732m in Q2 2018 (see Summary Table). This is explained largely by the increase in the gross saving of non-financial corporations (+€5,097m).
Increase in Net Borrowing of Government
The net borrowing (B.9) of Government (S.13) totalled €481m in Q2 2018, an increase of €356m on €125m in the equivalent period last year. While revenue increased (income from taxes on income (D.5) was up €800m), spending increased faster, the biggest item being capital investment (P.5) which was up by €810m.
Non-financial (S.11) and Financial (S.12) Corporations
The gross saving of non-financial corporations of €21,325m in Q2 2018 was an increase of €5,097m on the Q2 2017 value of €16,229m, driven by an increase in profits (B.2A3G) of €4,947m.
Financial corporations had gross savings of -€698m in Q2 2018, an improvement on -€974m in the same period of the previous year. The increase in saving for this sector was also driven by higher profits (up €480m).
Rest of the World Sector (S.2)
The net borrowing (B.9) by the rest of the world from Ireland amounted to €9,798m in Q2 2018 compared to net lending of €9,540m in Q2 2017, a change of €19,338m. The change to a net borrowing position is explained by the absence this quarter of large purchases of non-produced assets (NP) by the non-financial sector, which had a large impact on the second quarter figures in 2017.