| 18°C Dublin

Households saving levels are highest in 11 years


Close

Stock image

Stock image

Stock image

Household savings have hit their highest level since the last financial crisis.

People spent less in the first three months of the year, putting more money aside.

The savings level was higher than at any time in the past 11 years, the Central Statistics Office (CSO) said.

"Household saving increased in the first quarter of 2020, as employee pay went up, while consumer spending decreased," the statisticians said. This means the savings ratio hit 16.4pc, its highest level since 2009.

What is called the derived saving ratio measures the relationship between saving and income.

The CSO said gross disposable income rose from €30.19bn in the last three months of last year to €30.604bn in the first quarter.

Gross spending in the economy fell from €26.13bn in the last quarter of last year to €25.6bn in the January to March period of this year.

This meant the savings ratio was up.

Irish Independent