National accounts, non-financial sector accounts, Q4 2008

Seasonal adjusted figures show a 3.2 per cent increase in disposable income from the 3rd to the 4th quarter of 2008. The increase in the households’ and the non-profit institutions serving households’ (NPISHs’) disposable income is due to the increase in both wages and salaries and property income received, while mixed income show a decline in the 3rd and the 4th quarter. Real disposable income grew by 1.7 per cent from the 3rd quarter to the 4th quarter.

Pensions and social contributions make approximately one third of disposable income, and indicated a 2.4 per cent increase in the 4th quarter. Pensions’ and social contributions’ annual growth rate was 6.8 per cent from 2007 to 2008.

Seasonal adjusted figures show a 1.1 per cent increase in the compensation of the employees compared to the previous quarter. Households’ property income was 3.6 per cent higher in the 4th quarter compared to the previous quarter.

Net interest paid as a ratio of disposable income has fluctuated for the present years as a consequence of the development in financial markets. For 2004 and 2005 the ratio is estimated to 4.9 and 4.5 per cent. Since 2005, both interest rates and households’ borrowing have increased gradually. For the 3rd and 4th quarter of 2008 the ratio is estimated to 8.0 and 8.4 per cent.

Savings - defined as disposable income minus final consumption expenditure and corrected - recorded NOK 2.7 billions in the 4th quarter of 2008 and NOK 21 billions for 2008 as a whole. The household saving ratio was low in the 1st quarter, but has increased gradually the following quarters. Household savings ratio was thus 4.5 per cent in the 4th quarter of 2008, compared to 2.3 per cent in the 2nd quarter.