Irish households saved €8.2 billion in the first three months of the year, new figures from the Central Statistics Office (CSO) reveal.
The rate of saving was lower in the first quarter, dropping to 14.0 per cent, compared with 14.8 per cent in the final three months of 2024.
The decrease represents a return to the regular savings level set out since early 2023, following two high-saving quarters in the latter half of 2024.
Saving is defined by the CSO as the proportion of income left over following all current spending, and includes additions to pension funds and investments in housing and home improvements.
Before adjusting for seasonal factors or inflation, households saved €8.2bn in the first quarter of the year, this figure included €3.8 billion of investment in housing, and pension funds additions of €1.1 billion.
The CSO pointed to figures from the Central Bank of Ireland which show households’ net deposits into banks in Ireland rose by €3.0 billion in the first quarter. Households collectively increased their loan liabilities to banks by €0.7 billion in the period.
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Spending levels
In the first quarter, households spent €38 billion on goods and services. While this figure is 9 per cent lower than the final quarter in 2024, adjusted for seasonal and inflation factors, the figure was slightly higher, up 0.8 per cent.
Sales volume of in accommodation increased by 3 per cent, while food service dropped 3 per cent. Accommodation services was up 3%, while Food Service was down 3%. The Retail Sales Index seasonally adjusted volume of sales in Bars was down 7 per cent.
The most significant increases in prices for customers were seen in alcoholic beverages and tobacco which rose 4.2 per cent, as well as food and non-alcoholic beverages which increased by 3.3 per cent.
The only areas to see prices decrease in comparison to March 2024, were clothing and footwear as well as furnishings, household equipment and routine household maintenance.
CSO statistician Peter Culhane said that household income rose during the period “mainly driven by compensation of employees”, noting that average pay and total workforce figures grew in the period.
“At the same time, households are spending more on final consumption such as food, rent and transport. Increased spending is due to higher prices - inflation - as well as higher volumes of goods and services being bought,” he said.
“Households saved 14.0 per cent of their income in the first three months of this year which is in keeping with the 2023 and 2024 average. This level of saving adds to overall household wealth in the form of buying new homes, growing bank deposits, pension savings, and paying off debt.”
