Households in Ireland saved 12.5 per cent, or \u20ac1 in \u20ac8, of their disposable income in April, May and June, according to the Central Statistics Office (CSO). <\/p>\n
This saving rate was down from 13.2 per cent in the previous quarter but close to the average of 12.7 per cent since the start of 2023, the agency said.<\/p>\n
At the height of the pandemic in 2020, households here saved almost \u20ac30 billion (on an annual basis) by spending less on items such as transport, childcare, holidays and eating out. Since then savings rates have returned to pre-pandemic levels.<\/p>\n
Before adjusting for seasonality or inflation, households saved \u20ac6.8 billion in the second quarter, the CSO\u2019s figures show. <\/p>\n
Investment in property and improvements (most of which was by households) was \u20ac5.5 billion. Additions to pension funds were almost \u20ac1 billion.<\/p>\n
\u201cSaving can add to a household\u2019s overall wealth in the form of buying new homes, growing bank deposits, pension savings and paying off debt,\u201d the agency said.<\/p>\n
\u201cWhile household income rose in the quarter, households were also spending more on final consumption,\u201d it said. \u201cThis increased spending was driven by both higher prices (inflation) as well as higher volumes of goods and services being bought.\u201d<\/p>\n
The CSO figures show total disposable income of households here was \u20ac47 billion in the second quarter. <\/p>\n