Households' disposable income increases further

The real disposable income of households was 2.5 percent higher in the 3rd quarter of 2014 than in the same period last year, Statistics Netherlands announced today. The disposable income of households also increased in the first two quarters of this year.

The increase in disposable income is the sum of changes in paid income taxes and premiums, received benefits and inflation. Inflation and rising expenditures on taxes and premiums have a negative effect on disposable income.

The main reason for this increase in the third quarter was the increase in income from production activities, particularly the income of the self-employed. This income has been rising for a year and in the 3rd quarter was 1.3 billion euro above the level of last year.

With inflation currently being relatively low, its depressing effect on real disposable income in the 3rd quarter (1.3 percent) was lower than the average in recent years.