New Zealand household saving steady, net worth increases

WELLINGTON, Jan. 25 (Xinhua) -- New Zealand household saving was 856 million NZ dollars (522.95 million U.S. dollars) in the September 2023 quarter, relatively unchanged from June 2023 quarter levels, with household net worth increasing 0.2 percent, the statistics department Stats NZ said on Thursday.

"The household sector maintained its level of saving in the September 2023 quarter, with rising household incomes keeping pace with increased household spending," said Ruvani Ratnayake, Stats NZ national accounts industry and production senior manager.

Household net disposable income increased 0.5 percent to 59.2 billion NZ dollars (36.17 billion dollars) in the September quarter, while household spending increased 0.5 percent to 58.3 billion NZ dollars (35.62 billion dollars), statistics showed.

The increase in household spending was driven by price increases, as the volume of goods and services consumed by households fell 0.6 percent in the September quarter, according to Stats NZ.

The household saving ratio, which compares household saving to net disposable income, remained at 1.4 percent in the September quarter.

Household net worth increased 0.2 percent, or 5.3 billion NZ dollars (3.24 billion dollars), in the September quarter following a period of decline from the March 2022 quarter, according to Stats NZ.

"The September 2023 quarter increase in household net worth reflects a rise in property values for both homeowners and landlords," Ratnayake said, adding the result compares to an average quarterly decline in household net worth of 1.4 percent over the previous six quarters.