Household income growth outpaces expenditure last year: MTI

Residents spent an average of $4,720 a month in this period.

Local incomes and average expenditure both rose steadily in 2012/13, but data from the Department of Statistics showed that household income rose much faster than spending over this period.

The survey, which was conducted from October 2012 to September 2013, showed that the average monthly household income of Singapore residents rose from all sources, from $8,110 in 2007/08 to $10,500 in 2012/13.

Resident households spent an average of $4,720 a month on goods and services, higher than the $3,810 in 2007/08.

“Compared to the increase in average household income between 2007/08 and 2012/13, average household expenditure rose by a lower 4.4 per cent per annum. Similarly, on a per household member basis, average household expenditure increased more slowly than income, by 4.6 per cent and 6.2 per cent respectively,” noted the report.

Here’s more from the report:

Average monthly household income from all sources rose by 5.3 per cent per annum in nominal terms between 2007/08 and 2012/13.

Households across all income groups experienced income growth over this period. Those in the lowest to middle income quintiles saw their income increase by 6.1 to 6.6 per cent per annum, faster than the income growth of households in the top two quintiles.

Notably, households in the lowest 20% also experienced significantly faster income growth between 2007/08 and 2012/13 than in the earlier 5-year period from 2002/03 to 2007/08.

Across house types, households living in HDB flats experienced higher annual income growth (5.2 per cent) between 2007/08 and 2012/13, compared to those in condominiums and other apartments (3.6 per cent) and landed properties (4.2 per cent).

Employment income accounted for 79 per cent of total household income from all sources in 2012/13, with business income and income from non-work sources contributing 11 per cent and 10 per cent respectively.