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People have more money in their pockets as wages rise

Disposable income rose last year, the Central Statistics Office said yesterday.

Gross disposable household income increased 2.5pc as wages rose and self-employed people earned bigger profits, the CSO added.

Total disposable household income rose to €86.3bn in 2012 from €84,196m in 2011. Household expenditure increased by 0.5pc to €77.9bn in the same period.

The so-called gross savings ratio, which expresses savings as a percentage of gross disposable income, increased from 10.7pc in 2011 to 12.5 pc in 2012. The savings ratio includes money that has been saved and money that has been repaid to banks. Overall, gross household savings decreased by €214m to €2.48bn in the fourth quarter of 2012 from the third quarter.

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