The disposable income of Irish households rose by 2.5 per cent last year as a result of higher wages and increased profits of the self-employed.
Figures published by the Central Statistics Office (CSO) show households’ gross disposable income rose to €86.27 billion last year, up from €84.19 billion in 2011.
The institutional sector accounts, which bring together information on the financial activities of households, businesses and the Government, show household expenditure increased by €424 million to €77.92 billion in 2012.
Household savings, which are primarily used to pay down debt and fund property investment, rose by €1.77 billion to €11.1 billion.
The derived gross savings ratio, which expresses savings as a percentage of gross disposable income, increased from 10.7 per cent in 2011 to 12.5 per cent in 2012 as a result.