National accounts, non-financial sector accounts, Q3 2008

The increase in the households’ and NPISHs’ (non-profit institutions serving households) disposable income less dividends is due to the increase in both wages and salaries and property income received. Pensions and social contributions from the government sector was however 0.2 per cent lower than in the previous quarter. Seasonal adjusted figures also show a 2.6 per cent increase in the compensation of the employees compared to the previous quarter. Households’ property income was 8 per cent higher in the third quarter compared to the second quarter. The real disposable income therefore grew by 0.4 per cent from second quarter to the third quarter.

Savings - defined as disposable income minus final consumption expenditure and corrected - recorded minus NOK 4.9 billions in the third quarter of 2008. The household savings ratio during the first three quarters of 2008 was positive, about NOK 1 billion for 2008. Seasonal adjusted figures on the other hand, show a negative development starting with the fourth quarter of 2007. Household savings ratio is thus -0.1 per cent in the third quarter of 2008 compared with -0.8 per cent in the second quarter.

Interest paid as a ratio of disposable income has fluctuated in recent years as a consequence of the development in financial markets. For 2004 and 2005 the ratio is estimated to 6.5 and 6.1 per cent. Since 2005, both interest rates and households’ borrowing have increased gradually. For the second and third quarter of 2008 the ratio is estimated at 13.5 and 14.4 per cent.