New Zealand household saving falls amid rising costs

Alsharq Tribune-AFP 

New Zealand households spent more than they earned in the March 2025 quarter, with household savings falling by 392 million NZ dollars to a negative 1.6 billion NZ dollars, according to the statistics department Stats NZ on Thursday.

The negative saving figure indicates that households collectively spent beyond their disposable income, relying on borrowing or drawing down existing funds to cover the gap, Stats NZ said.

Household net disposable income rose 1.5 percent to 60.6 billion NZ dollars, driven mainly by higher salaries and wages, particularly in the health care, social assistance, manufacturing, and business services sectors, it said.

Despite this income growth, household spending increased at a faster pace, up 2.2 percent to 62.2 billion NZ dollars, driven by higher outlays on cultural and digital services, accommodation, motor vehicles, and clothing, according to Stats NZ institutional sectors spokesperson Will Bell.

Stats NZ said these figures reflect the overall position of New Zealand households and do not capture variations among individual households. (1 NZ dollar equals 0.61 U.S. dollar)