Households savings steady but back at 2019 levels

Household savings ratio between income and expenditure was about 10% in the first three months of the year, down sharply from the rate of almost 14% in the same quarter a year earlier, CSO data shows

Economists had predicted the savings built up during the pandemic years would help offset future shocks to consumption in the economy, such as any inflation shock. 

Households are still saving but the amounts they are putting away compared with spending are back to levels before the onset of the pandemic, the latest official figures suggest.

The Central Statistics Office said its household savings ratio between income and expenditure was about 10% in the first three months of the year, little changed from the previous quarter, but down sharply from the rate of almost 14% in the same quarter a year earlier.