Household saving continues to improve

New Zealand’s household sector saving was $200 million in 2011, the first time it has been positive since 2000, Statistics New Zealand said today. This is equal to 0.2 percent of household net disposable income.

Overall this compares with the March 2010 year, when household expenditure was $1.6 billion more than income.

"Household sector saving is positive for the first time in more than a decade, after borrowing first began to decline several years ago," economic statistics development acting manager Vannessa Turner said.

After peaking in 2007 at $11.8 billion, combined central and local government saving continued to decrease, reaching negative $2.4 billion in the year ended March 2011.

Gross disposable income for combined central and local government increased only $200 million in 2011, to $40.5 billion. Taxes from the household and producer enterprises sectors were down. Gross disposable income includes taxes and GST.

Overall, New Zealand’s national saving was $1.2 billion in the year ended March 2011, compared with $2.0 billion the previous year.

The household and combined government sectors are published up to the year ended March 2011. Accounts for all sectors are available from 1999 to 2009 for the years ended March.

Institutional sector accounts break down the national accounts into six mutually exclusive economic sectors: producer enterprises, financial intermediaries, government, households, private non-profit organisations serving households, and the rest of the world.

See also:
Institutional Sector Accounts: 1999–2009 – Information release