New Zealand household saving was $424 million in the December 2023 quarter as household net disposable income exceeded spending for the third consecutive quarter, according to figures released by Stats NZ today.
Household net disposable income increased by 0.3 percent to $59.0 billion in the December quarter, while household spending increased by 1.3 percent to $58.6 billion.
"Across all households, saving has remained positive despite cost-of-living pressures. However, the overall level of household saving declined in the quarter as spending increased at a faster pace than net disposable income," national accounts institutional sectors senior manager Paul Pascoe said.
These statistics describe the household sector as a whole, rather than the different experiences of individual households.
The household saving ratio, which compares household saving to net disposable income, decreased from 1.7 percent in the September 2023 quarter to 0.7 percent in the December 2023 quarter.
| Quarter | Final consumption expenditure | Net disposable income |
| Dec-18 | 44005000000 | 43569000000 |
| Mar-19 | 44008000000 | 43323000000 |
| Jun-19 | 44650000000 | 44987000000 |
| Sep-19 | 45304000000 | 45681000000 |
| Dec-19 | 45863000000 | 46440000000 |
| Mar-20 | 45535000000 | 47101000000 |
| Jun-20 | 40387000000 | 47239000000 |
| Sep-20 | 46354000000 | 48897000000 |
| Dec-20 | 47500000000 | 49472000000 |
| Mar-21 | 49943000000 | 52620000000 |
| Jun-21 | 50469000000 | 50317000000 |
| Sep-21 | 47821000000 | 51742000000 |
| Dec-21 | 51071000000 | 52511000000 |
| Mar-22 | 53760000000 | 53719000000 |
| Jun-22 | 53333000000 | 53832000000 |
| Sep-22 | 55012000000 | 55093000000 |
| Dec-22 | 56237000000 | 55555000000 |
| Mar-23 | 57218000000 | 56955000000 |
| Jun-23 | 57725000000 | 58505000000 |
| Sep-23 | 57830000000 | 58831000000 |
| Dec-23 | 58561000000 | 58985000000 |
Household net disposable income is the amount of money a household has once all money coming in (such as wages, interest, and child support) and outgoings (like taxes) have been accounted for. It represents the money a household can spend, save, or invest.
Total income receivable increased by $1.2 billion for the December 2023 quarter. This was driven largely by a 1.5 percent increase in wage and salary earners income (compensation of employees) and a 3.5 percent increase in social assistance payments received by households, for example jobseeker and emergency assistance benefit payments. Household sector income from interest bearing assets increased by 5.3 percent. While the compensation of employees increased, the income of self-employed business owners and partnerships (entrepreneurial income) declined 1.4 percent.
Household income payable rose by $1.1 billion to $24.9 billion (an increase of 4.6 percent) in the December 2023 quarter, due to a 4.8 percent increase in income tax paid.
The increase in household spending was led by a rise in spending on transport services such as air travel .
Household net worth increases
Household net worth increased 0.4 percent ($10.0 billion) to $2,324 billion in the December 2023 quarter, following a 1.1 percent increase in the September 2023 quarter. This was mainly driven by an increase in the value of land and residential building assets (up $16.2 billion or 1.4 percent).
"The increase in house prices this quarter is the main contributor to the increase in household net worth," Pascoe said.
| Quarter | Change in net worth |
| Dec-18 | 9927000000 |
| Mar-19 | 22283000000 |
| Jun-19 | -8568000000 |
| Sep-19 | 26402000000 |
| Dec-19 | 37054000000 |
| Mar-20 | 24367000000 |
| Jun-20 | 21272000000 |
| Sep-20 | 70424000000 |
| Dec-20 | 1.18126E+11 |
| Mar-21 | 1.22783E+11 |
| Jun-21 | 97468000000 |
| Sep-21 | 1.26471E+11 |
| Dec-21 | 1.24983E+11 |
| Mar-22 | -17162000000 |
| Jun-22 | -76011000000 |
| Sep-22 | -43184000000 |
| Dec-22 | -12965000000 |
| Mar-23 | -30396000000 |
| Jun-23 | -21105000000 |
| Sep-23 | 26114000000 |
| Dec-23 | 9984000000 |
| Quarter | Net worth |
| Dec-18 | 1705404000000 |
| Mar-19 | 1727687000000 |
| Jun-19 | 1719119000000 |
| Sep-19 | 1745521000000 |
| Dec-19 | 1782575000000 |
| Mar-20 | 1806942000000 |
| Jun-20 | 1828214000000 |
| Sep-20 | 1898638000000 |
| Dec-20 | 2016764000000 |
| Mar-21 | 2139547000000 |
| Jun-21 | 2237015000000 |
| Sep-21 | 2363486000000 |
| Dec-21 | 2488469000000 |
| Mar-22 | 2471307000000 |
| Jun-22 | 2395296000000 |
| Sep-22 | 2352112000000 |
| Dec-22 | 2339147000000 |
| Mar-23 | 2308751000000 |
| Jun-23 | 2287646000000 |
| Sep-23 | 2313760000000 |
| Dec-23 | 2323744000000 |
Among household financial assets, insurance and pension fund assets rose $6.7 billion (4.6 percent) this quarter, and currency and deposits increased $4.8 billion (2.0 percent), whereas equity and investment fund shares decreased $14.2 billion (1.4 percent).
Total household financial liabilities increased 1.3 percent this quarter, mainly due to an increase in the value of mortgages for residential buildings and land.
