Today the CSO have released the Q4 2011 Non-Financial Accounts which gives a macro view of the sectors of the economy.
The 2011 figures remain preliminary (and won’t be finalised until the full release in October) but the current and capital accounts of the household sector for the past five years are presented below the fold.
Space limits the display to five years but a table with all the data going back to 2002 can be viewed here.
The changes in the household sector are pretty evident. Self-employee earnings and employee wages fell substantially in 2009 but the aggregates have been stable in nominal terms since then. The preliminary figures show that there was a small increase in employee wages in 2011.
Accounting for changes in property income (mainly interest but also distributed income from corporations) means that Gross National Income for the household sector rose by 0.75% in 2011. However, as a result of increases in taxes, Gross Disposable Income for the household sector fell for the fourth straight year with a drop of 0.4%.
Consumption fell by more than disposable income and in 2011 household consumption fell by a further 1.2% in nominal terms. This means that Gross Savings rose to 14.5% of Gross Disposable Income in 2011, though the ratio was slightly higher in 2009.
The stand-out feature of the capital account is the collapse in gross capital formation. Investment from the household sector, the acquisition of non-financial assets, is down more than 80% from its peak in 2006 and, in the main, this was the purchase of new houses. Depreciation has also fallen as the value of housing assets is lower.
The household sector has swung from being in a net borrowing position to being a net lender, but as has been pointed out many times, a lot of this money is going to pay down the debt built up previously rather than accumulating deposits.
Dan O’Brien had an article on the financial balance sheet of the household sector in Friday’s Irish Times which complements the non-financial accounts given above.